Tax Tips when Working Remotely
Last year, the coronavirus pandemic required many employees to work remotely from home. If you were one of them, you now may have questions about the tax implications of working remotely that you need to address. TurboTax® has provided answers to your top tax questions regarding remote employment below.
I still pay tax on my income, right?
Yes. The income from your job will be reported to you on a W-2 in January and you will report that income on your tax return. Nothing there has changed, at least for the federal tax return. But you may have special tax issues to deal with when you file your state income tax return unless you live and work in a state that has no income tax.
What’s different about state returns for remote employment?
If you live in the same state in which your employer is located, state taxes are pretty straightforward. But when the pandemic hit and commuting to the office became a thing of the past, many people left urban areas and moved to the less-populated country where it was less expensive to live. If you crossed state lines to do that and now live in a different state from your former office, you may be dealing with the income tax rules of two states, not just one.
do I owe taxes to both states?
Good question – it depends. Most states look to your physical presence in determining whether to tax you. If that’s the case, if you live and work in one state for an employer in another state, you will only owe tax to the state in which you live and work. But each state is different, so be sure to use tax preparation software such as TurboTax that considers the facts and circumstances of your employment situation in light of the tax laws of the states involved.
Can I deduct the costs of working from home, such as my computer, internet, office furniture and supplies?
Probably not. Unfortunately, the tax act passed at the end of 2018 cut those deductions for most employees, with the exception for teachers that allows them to deduct up to $250 for supplies used in the classroom. If you aren’t entitled to a deduction for your expenses, your best bet is to ask your employer to give you a non-taxable reimbursement for those costs.
GET YOUR BIGGEST POSSIBLE TAX REFUND
When you're ready to file your taxes, TurboTax has you covered. TurboTax experts are standing by when you need help — and can even do your taxes for you, start to finish, with TurboTax Live®. Georgia United Credit Union members can save up to $15 on Turbo Tax federal products.
YOUR ACCOUNT INFORMATION
Georgia United members can manage their checking and savings accounts 24-hours a day with Online Banking and our Mobile App. Easily access your tax documents, view your account balance, pay bills, apply for a loan, deposit checks* and more, all from the comfort of your home.
You can also receive alerts when credits or debits post to your account with online account alerts. To set up a new alert, log in to your account and from the navigation menu, select ‘Services’ and click ‘Alerts’.
Maintaining the security of your personal and financial information is our top priority. Remember that Georgia United will never call, email or text you to request your account password or PIN. If you are prompted for this information, do not respond and contact us directly.
The information in this article for general educational purposes only and not intended to provide specific advice or recommendations. Please discuss your particular circumstances with an appropriate professional before taking action.
*Items transmitted using this service are not subject to the funds availability requirements of the Federal Reserve Board Regulation CC. Deposits accepted using this service will be available within two business days. Georgia United may make such funds available sooner.