

Even staying with relatives, crashing on a friend’s Murphy bed or taking an Airbnb in another state for a few months could trigger a tax burden, if that was your work location. You don’t need to own property or rent an apartment in another state to incur a tax obligation. Less than half (46 percent) are aware that the number of days they worked out of the state where their physical workplace is located may impact the amount of state taxes owed.Įach state has its own tax rules and each treats temporary workers differently.Forty-seven percent are not aware that each state has their own tax laws related to remote working.More than half of Americans who have worked remotely during the pandemic (55 percent) are not aware of possible tax consequences from not changing their state tax withholding to reflect their remote work location.Few employees gave any thought to tax considerations and many saw no need to tell their employer about their plans.Īccording to a recent survey by the Association of International Certified Professional Accountants (AICPA): While traveling to another country became all but impossible, taking off for another state seemed simple enough.

By the end of 2020, it was two out of three! With an open-ended break from the office, some opted to work remotely from a different state-often one that was warmer, cheaper or closer to family.
#IF I WORK REMOTELY DO I PAY STATE TAXES FULL#
At the beginning of the Covid pandemic, just five percent of American white collar workers worked remotely full time.
