![working remotely tax implications working remotely tax implications](https://cdn.shopify.com/s/files/1/0242/9062/3522/products/HTB1mwbzlfImBKNjSZFlq6A43FXai_1200x1200.jpg)
If you live and work in one state for an employer in another state, you will only owe tax to the state in which you live and work. Most states look to your physical presence in determining whether to tax you. One of the major tax implications of working remotely is If you now live in a different state from your former office, you may be dealing with the income tax rules of two states, not just one. But when commuting became less common, many people left urban areas and moved someplace less expensive.
![working remotely tax implications working remotely tax implications](https://s3-prod.crainscleveland.com/Grassi_0.jpg)
If you live in the same state in which your employer is located, state taxes are pretty straightforward. What’s different about state returns for remote employment? But unless you live and work in a state with no income tax, you may have special tax issues to deal with when you file your state income tax return. Nothing there has changed, at least for the federal tax return. The income is reported to you on a W-2, and you’ll report that income on your tax return. What tax issues? I still pay tax on my income, right? So, let’s take a look at the tax issues of remote employment. Now, with tax time approaching, there are tax implications of working remotely that you need to address, and we are here to help. It has been a tumultuous time, so congratulations for dealing with it powerfully and creating solutions that worked for everyone. If you were one of them, you juggled work and family, including children newly banished from their schools.
![working remotely tax implications working remotely tax implications](https://nebraska-cpa.thenewslinkgroup.org/wp-content/uploads/2021/04/Continued-remote-working.jpg)
Last spring, many of us were asked to leave the office and begin working remotely from home. Tax Implications of Working Remotely: Q and A