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That may mean that while you are paying taxes in two different states, taxation will not be at the same time. When you work and live in different states, you may create a state of dual residency. So even though creating that link may not be something much, it is worth your consideration. Then, in that case, you will become the focus of taxation in your state. For instance, if the employer had no connection with the state where you are staying, it may become a problem. Just know that by working from a different state from the employer’s home state, you may be creating a link. Here is some of the information you need about your taxation approach and what that means to you. Understanding everything you need to know about taxation, whether working remotely or from the office, gives you confidence in filing your tax returns. Learn More about Tax Implications to Avoid Penalties That is why you need to know before deciding whether you want to work for a company in a different state. If you are working for a company located in a different state from the one you reside in, chances are you will pay tax twice. Since different states have different approaches to taxation, understanding your state approach will help you prepare well for taxation.Īlthough you have to look at taxation from different angles, knowing that working remotely may mean paying tax in two different states is good. Before you plan to work remotely, you may need to consider what that means to you in terms of tax.