Wednesday, July 15, 2020

Remote working and the tax man

Working from home? Never done that before? Guess what: If you're working remotely from a State different from your usual workplace, beware the remote-working tax man.

Work in; work from:
Except for a few States, like Florida, Texas, and Washington, others have -- or may have -- income taxes that apply if you work in -- or from -- those States, in some cases: as little as one day.

And, even Florida, Texas, and Washington have business taxes that might apply.

The only constant is change
Thus, with the pandemic and the shift of work location, the tax situation may also be shifting. Some States are waiving income taxes for workers who have been directed to work from home; other states have made no decision about that, as yet.

So, check it out! Your employer may make it right for you by grossing up your compensation for the change in your tax situation, especially if work-from-home is not optional.

What?! Another sheriff?
In any event, among many new sheriffs in town, add the tax man!

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