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Why am I being asked to pay Colorado state taxes ? I live in Maine and the company I work for is in Denver.?
The company screwed up and said your wages were Colorado wages. Now, you need to file a Colorado Non-Resident tax return to get back anything they withheld from you and gave to Colorado. You, of course, will also have to file a Maine tax return and true up with them. At the end of the day, you will be made whole….as long as you can convince Colorado you don’t owe them…

anything. You don’t owe them anything if you were never physically present in Colorado while working. By the way, go to your employer NOW and tell them to fix your state withholding so you don’t have to go through this whole thing next year.

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