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The Tax Headaches of Working Remotely
“Each state has its own rules,” one tax expert says. So if you worked in a state other than your usual one in 2020, here are some tips on dealing with the tax season.
Credit.Party of One Studio
March 12, 2021
Last year, Ariele Doolittle, a tax lawyer, got a call from a client who lived and worked in New York but was considering working remotely from California temporarily after his offices were shuttered in the pandemic.
Not a good idea, Ms. Doolittle told him.
California, she said, would tax his income because he was physically working there. And New York would probably tax his earnings as well. Plus, when he filed his New York resident tax return, the state probably wouldn’t give him a credit for the taxes he paid to California.
A bipartisan group of lawmakers unveiled a plan this week to extend the Paycheck Protection Program for two months amid concerns that the March 31 expiration of the small-business rescue fund could leave struggling employers without a key economic lifeline.