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Remote workers may need to reevaluate their tax situation, as the reprieve that resulted in no tax filing obligation for remote workers applied only for last year (2020).
“As emergency orders are lifted, the guidance is changing,” said Eileen Sherr, director for tax policy and advocacy with the American Institute of CPAs. “Some states are lifting them now.”
The situation is further complicated by the fact that many workers moved to a different city or state, and they are not as familiar with their new state’s tax requirements. It’s important for remote workers to be aware that they need to pay taxes to the state where they reside, regardless of where they earned their wages.
That being said, remote workers may also have tax liabilities in additional states, depending on where their company is located.
