Working in Kentucky and living in Texas

You worked in Kentucky so you will have to pay KY income taxes whether you lived there or not. The "not more than one year" rule deals with federal taxes and the deductibility of transportation and living expenses while away from your tax home.

The Kentucky issue seems easy. Surely you owe Kentucky tax on your Kentucky source income. Check the KY instructions to see if you're considered a resident or nonresident. Since TX has no income tax you'll get no credit on TX taxes for the tax paid KY. If you itemize your Federal deductions you'll be able to deduct either the KY income tax or the sales tax. You refer to both a "client" and and "employer." If you're an employee, yes the employer should be withholding KY income tax. If you're an independent contractor, you are responsible for making estimated tax payments.

-- Phil Marti Clarksburg, MD

Are you an employee or an independent contractor? That is the underlying issue in withholding.

Why not work in Texas and periodically fly to Kenttucky to meet with the client?

Dick

For whose convenience is that? You probably owe Kentucky taxes on those earnings as well as for the work you did in Kentucky. Seth