Your taxes are going to be messy if you worked in another state during Covid-19. Here's what to know.
Key Points The pandemic has led some people to relocate to a relative’s house or a second home in a different state. It’s been close to six months since states put lockdowns in place. If you moved elsewhere in that time, you may have a tax obligation to that state.
About 1 in 5 American adults have relocated due to the coronavirus pandemic or know someone who had, according to Pew Research Center.If you've been hunkering down in a different state due to Covid-19, your tax situation is about to get a little more complex. The longer you stay away from your home base — particularly as we approach the sixth month of remote work for many people — the greater the chances you might have a tax obligation in your temporary abode. "We are at a stage where most people who have temporarily relocated to another state and are working elsewhere have reached a point where they would owe taxes to that state," said Jared Walczak, vice president of state projects at the Tax Foundation. "In the early days, there were concerns and legit challenges around people spending a week with family," he said. "But if you spent months working elsewhere, you have a tax obligation to that state."
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