Due to the pandemic, many employees have been working remotely. Some employees have moved out of state, which has implications for state tax returns if your employer is located outside the state where you worked remotely. Last year, some states had temporary relief provisions to avoid double taxation of income, but many of these provisions have expired.
«If your employer is in one state and you live in another state as a remote worker, there are six states that have a «special employer convenience» rule to avoid double taxation. These states are Connecticut, Delaware, Nebraska, New Jersey, New York and Pennsylvania.
If you do not live in these six states, consult your tax professional to see if there are other ways for you to mitigate double taxation.
