CPA Gene Marks joined FOX Business’ “Mornings with Maria” on Wednesday to give tax filing tips.
First, Marks said if you’re working remotely from a state that has no income tax, you have “nothing to worry about.” The states with no income tax are Nevada, Florida, Texas, Alaska, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
However, if someone moved to work remotely in any of the other 41 states, they are subject to its tax laws. Marks suggests carefully checking the state’s website for information.
“It could be as little as one day to two weeks. And then you're subject to that tax as well as filing state income tax forms in that state,” he said.
Marks also pointed out that a lot of states have reciprocity agreements, which allows residents of one state to work in another without taxes for that state being withheld from their pay. For example, he said, Michigan has agreements with Illinois and Kentucky or neighboring states.
However, some states, like Connecticut, he added, will give you a credit.
“If you did pay taxes in one other place and [paid] new taxes there, you can get a credit on your home state tax insurance against any taxes that you paid,” Marks explained.
“So you have to check with your state to make sure that you're not overpaying,” he added.
Furthermore, Marks said about six states are offering "exemptions."
The tax deadline is April 15, 2021.