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tic32003  
#1 Posted : Thursday, October 7, 2021 7:24:38 AM(UTC)
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If I'm working remotely in one state, but my place of employment is in another, what are the tax implications of that? Would I pay taxes in both states?


For example, let's say I'm hired for a job in Washington, DC but will live and work remotely from Alabama. Will I have to file income taxes in both Washington, DC and Alabama?
frankgonzalez  
#2 Posted : Thursday, October 7, 2021 7:46:25 AM(UTC)
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Originally Posted by: tic32003 Go to Quoted Post
If I'm working remotely in one state, but my place of employment is in another, what are the tax implications of that? Would I pay taxes in both states?


For example, let's say I'm hired for a job in Washington, DC but will live and work remotely from Alabama. Will I have to file income taxes in both Washington, DC and Alabama?
Your locality pay will be based on where you work (AL), and so that is where the Taxes are paid. If you live in Louisiana, but work in Mississippi, then you may have to file in both states unless they have an agreement between them (for example: DC, VA and MD have an agreement that you pay taxes in the location you live, not where you work as federal employees who work in DC are likely to live in VA or MD and vice versa with the sheer number of federal agencies in the DMV region).

You should have voted Cthulu...the greatest of all Evils
GRITS  
#3 Posted : Thursday, October 7, 2021 1:22:59 PM(UTC)
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If both states collect income taxes and don't have a reciprocity (an agreement between two states that allows residents of one state to request exemption from tax withholding in the other state) agreement, you'll have to pay taxes on your earnings in both states. In your instance of your example, you will only file for the state of (AL) because you are working and physically residing in that state.
tic32003  
#4 Posted : Friday, October 8, 2021 7:42:22 AM(UTC)
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Thanks, y'all!
BackGdInvestigator  
#5 Posted : Sunday, November 14, 2021 6:26:17 AM(UTC)

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My two cents.
To clarify - your employer is in Washington DC, but you telework and live in Alabama? If the COVID rules were not in place, would you still be in Alabama?

I have been a "remote" worker for a couple decades. The office I am assigned has always been in another state, the "HQ" is in MD. My locality pay is based on my home address (duty location) and I pay taxes to my resident state (not MD or my field office state).

If you are temporarily a remote worker, then your taxes are based on your permanent residence, just as your locality pay is based on your permanent office location.

Edited by user Sunday, November 14, 2021 6:27:15 AM(UTC)  | Reason: grammar

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djp  
#6 Posted : Wednesday, November 17, 2021 8:43:01 AM(UTC)

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Originally Posted by: tic32003 Go to Quoted Post
If I'm working remotely in one state, but my place of employment is in another, what are the tax implications of that? Would I pay taxes in both states?


For example, let's say I'm hired for a job in Washington, DC but will live and work remotely from Alabama. Will I have to file income taxes in both Washington, DC and Alabama?


How is your job listed?

If you were going to work then post pandemic you work from home you could have a pay change where your county of residence is not in locality pay area you could see a pay cut.

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