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According to the New York Times, if you decided to ride out the pandemic at your out-of-state vacation house or with your parents in the suburbs, you may be in for an unpleasant reality: a hefty tax bill.

Questions:

  1. What are the rules if you work in one state and live in another?
  2. Is there a standard number of days that you must live in one state to pay taxes but live in another state?
  3. Which 13 states have agreed not to tax workers who have moved there temporarily because of the pandemic?
  4. According to the article, a number of people have moved to Florida, Texas, Nevada or Wyoming during the pandemic. What do this states have in common?

Source:

Gross, J. (2020) Here’s How Moving Remotely Could Affect Your Taxes. The New York Times, Aug. 25 (Retrievable online at https://www.nytimes.com/2020/08/25/business/coronavirus-nonresident-state-taxes.html)

One Response to “Remote Work has Consequences for Taxes”

  1. Weiting Li, Xiaoming Li, Wenting Zhang, Naikang Chen

    1. What are the rules if you work in one state and live in another?
    Depend on the state and how long you work in there. The state with the person’s primary residency can tax the person worldwide income, and any state where the income is earned can also tax on the income the person earn in the state.
    2. Is there a standard number of days that you must live in one state to pay taxes but live in another state?
    There are no specific standard for number of days that a person must live in one state to pay taxes but live in another state. Some states count as little as one day, others, such as New York state, counts 14 as minimal.
    3. Which 13 states have agreed not to tax workers who have moved there temporarily because of the pandemic?
    Alabama, Georgia, Illinois, Indiana, Massachusetts, Maryland, Minnesota, Mississippi, Nebraska, New Jersey, Pennsylvania, Rhode Island and South Carolina.
    4. According to the article, a number of people have moved to Florida, Texas, Nevada or Wyoming during the pandemic. What do this states have in common?
    These states are lower-tax or no-tax state. Even they have to pay tax for both states, it would be less than other states where they were might have been taxed more there.

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