November 13, 2022 - Douglas Myser

Tax implications of working remotely. Not too many years ago, most people worked from an office. Yet the Covid Pandemic changed that. People who were locked up inside their homes for shelter, had time to think about work, and many industries started working remotely in an effort to protect those workers. Yet when the pandemic subsided to some degree, those workers saw work thru a different lens. Many now liked the idea of not having to go thru one or two hours of transportation, just to get to and from work. They saw the value increased when the number of child care facilities in the United States dropped dramatically, due to the financial stress of having no clients for too long. The savings between both of those two issues, was enough to coax many into a permanent work from home status. Tax implications of working remotely.

The shift from office to home office carries several tax implications that many newcomers to working from home are not aware of, and could potentially cause them to have a major tax deficiency and need to get Tax Resolution Services to resolve. The states have no coordination when it comes to those who work in one state, but live an another or have an office in another. In June of 2021 the Supreme Court denied the state of New Hampshire's motion to file a bill of complaint against the state of Massachusetts. The motion state that New Hampshire wanted an injunction against the Massachusetts regulation that would require workers to pay income taxes, as those workers worked there during the pandemic. There is currently no agreement among the states as to how to resolve this, and that leaves workers open to paying taxes in two different states. Getting the advice of a tax professional on this will be important for those in that situation.