For many people in the entertainment industry, seasonal work, tourism, agriculture, sports, and event-based careers, moving temporarily to work is simply part of the job. You may spend a few months filming in another state, working in a seasonal resort position, touring with a production, or accepting a temporary contract far from home.
One of the most common questions that comes up is:
"If I temporarily move for work, do I have to pay taxes in that state?"
The answer is often yes, but your permanent home state may still have a claim on your income as well.
Your Residency Usually Doesn't Change
A temporary work assignment generally does not change your state residency.
Your residency is typically based on factors such as:
- Where your permanent home is located
- Where you are registered to vote
- Where your driver's license is issued
- Where your vehicle is registered
- Where your family resides
- Where you intend to return after the job ends
If you leave California for a three-month film project in Georgia and then return home afterward, California will usually continue to consider you a resident during that period.
You May Have to File in More Than One State
Even if you remain a resident of your home state, the state where you earned the income may require a tax return.
For example:
- A California resident works on a six-month production in New Mexico.
- New Mexico taxes the income earned within its borders.
- California taxes the worker's worldwide income because they remain California residents.
This does not usually mean paying tax twice on the same income. Most states provide credit for taxes paid to another state, helping prevent double taxation.
Entertainment Industry Workers Often Face Multi-State Filing
Actors, animators, production staff, musicians, crew members, touring performers, and freelance contractors frequently work in multiple states throughout the year.
Common situations include:
- Filming projects in another state
- Touring productions
- Convention appearances
- Temporary studio assignments
- Remote production work while traveling
Depending on the amount earned and each state's filing requirements, you may need to file several nonresident states returns for a single year.
Keeping track of where work was performed becomes extremely important when tax season arrives.
Seasonal Workers Face Similar Challenges
Seasonal employees often encounter the same tax issues.
Examples include:
- Ski resort employees
- Summer camp staff
- Agricultural workers
- Holiday retail workers
- Tourism and hospitality employees
- Construction workers on temporary projects
A worker who spends four months in Colorado for a ski season but returns home afterward may still be considered a resident of their home state while also owing taxes on Colorado-earned income.
Travel Expenses May Be Deductible in Certain Situations
A temporary work assignment can sometimes create deductible travel expenses if the assignment is away from your tax home and meets IRS requirements.
Potential deductible expenses may include:
- Lodging
- Transportation
- Airfare
- Mileage
- Meals (subject to limitations)
However, the rules can be complex and depend heavily on whether the assignment is considered temporary versus indefinite. Simply choosing to live somewhere else for convenience does not automatically create a deduction.
Proper documentation is essential.
Keep Detailed Records
If your work takes you across state lines, maintain records throughout the year rather than trying to reconstruct everything later.
Helpful records include:
- Work contracts
- Pay stubs
- Travel itineraries
- Housing agreements
- Mileage logs
- State withholding information
- Dates worked in each location
Good records can save significant time and help ensure income is reported correctly between states.
In conclusion, a temporary move for entertainment, production, seasonal, or contract work does not automatically change your state residency. However, it may create tax filing obligations in the state where the work was performed.
If you earned income in multiple states during the year, you may need both resident and non-resident tax returns. Understanding these rules early can help avoid surprises, missed filings, and unexpected tax bills.
When in doubt, consult a qualified tax professional who can determine which states require returns and help ensure you receive any available credits for taxes paid elsewhere.
Disclaimer: This article is for informational purposes only and should not be considered tax, legal, or financial advice. Tax laws vary by state and individual circumstances. Consult a qualified tax professional regarding your specific situation before making any tax-related decisions.