Saturday, April 10, 2021

Tax filing tips for remote workers living in different states amid COVID

The 2021 tax season is simply weeks away, however submitting could also be extra complicated to these working remotely from totally different states due to the coronavirus pandemic.

CPA Gene Marks joined FOX Enterprise’ “Mornings with Maria” on Wednesday to provide tax submitting ideas.

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First, Marks mentioned for those who’re working remotely from a state that has no revenue tax, you have got “nothing to fret about.” The states with no revenue tax are Nevada, Florida, Texas, Alaska, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Nonetheless, if somebody moved to work remotely in any of the opposite 41 states, they’re topic to its tax legal guidelines. Marks suggests fastidiously checking the state’s web site for info.

“It might be as little as someday to 2 weeks. And you then’re topic to that tax in addition to submitting state revenue tax types in that state,” he mentioned.

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Marks additionally identified that a number of states have reciprocity agreements, which permits residents of 1 state to work in one other with out taxes for that state being withheld from their pay. For instance, he mentioned,  Michigan has agreements with Illinois and Kentucky or neighboring states.

Nonetheless, some states, like Connecticut, he added, will provide you with a credit score.

“When you did pay taxes in a single different place and [paid] new taxes there, you will get a credit score on your property state tax insurance coverage towards any taxes that you simply paid,” Marks defined.

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“So it’s important to examine together with your state to just remember to’re not overpaying,” he added.

Moreover, Marks mentioned about six states are providing “exemptions.”

The tax deadline is April 15, 2021.

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