Navigating Remote Work Taxation: A Potential Headache
Working from different states while living in another can lead to potential double taxation, as each state has different rules regarding income tax for residents and nonresidents. States without income tax and those with reciprocal tax agreements can simplify the tax process, but the "convenience of the employer rule" in certain states may still result in double taxation. Additionally, spending time in multiple states can further complicate taxes, requiring individuals to track the amount of time spent in each state.