According to the New York Times, workers may have to file more than one state tax return, and in certain situations they could end up owing taxes in both states. The details depend on your home state and what state you worked in during 2020.
- What type of rules apply?
- If you end up paying state income tax in two states, will your payment be a double amount?
- What generally happens in states that share a border?
- Do all states tax people who moved in temporarily during the pandemic?
- What states use special rules to tax remote workers based on the location of their employer’s office — even if the employee doesn’t physically work at that location?
- Has this only been an issue since coronavirus?
- What state or states is/are easing this position and will it be temporary or permanent?
Carrns, A. (2021) The Tax Headaches of Working Remotely. The New York Times, March 12 (Retrievable online at https://www.nytimes.com/2021/03/12/your-money/taxes/2020-taxes-work-from-home.html)