The Impact of Remote Work on Your Taxes

Remote work has revolutionized the office, but it has also complicated taxes. If you live in one state and work for a company in another, you might be subject to double taxation or specific credits. Learn how to navigate these legal complexities.

State Nexus and Tax Liability

Generally, you owe income tax to the state where you physically perform the work. However, some states have "convenience of the employer" rules that might complicate this.

Reciprocal Agreements

Some neighboring states have agreements where you only pay tax to your state of residence, regardless of where your employer is located.

Home Office Deductions for Employees

Note that in many jurisdictions, W-2 employees can no longer deduct home office expenses on their federal taxes, though some state-level deductions may still apply.