• Skip to main content
  • Skip to footer
  • Contact Us
  • Locate Us
  • Apply For A Loan
  • Events

SafeAmerica Credit Union

  • Checking
  • Savings
  • Loans
  • Services
  • Autos
  • Payments
  • Join
  • Log In

Remote work

February 5, 2021 • By Kevin Alvarez

Your Top Tax Question About Working Remotely, Answered

Last spring, many of us were asked to leave the office and begin working remotely from home. If you were one of them, you know that presented a lot of issues to be solved as you juggled work and family, including children newly banished from their schools. It was a tumultuous time, and congratulations for dealing with it powerfully and creating solutions that worked for everyone. Whew!

Now, with tax time approaching, there are tax implications of working remotely that you need to address, and we are here to help. So, let’s take a look at the tax issues of remote employment.

What tax issues? I still pay tax on my income, right? Yes indeed. The income from your job will be reported to you on a W-2 in January, and you’ll 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.

Oh no, 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 axed 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.

When it's time to file your taxes, TurboTax® is here to help!

From simple to complex taxes, TurboTax has you covered. And when you need help, real experts are standing by — and can even do your taxes for you, start to finish with TurboTax Live®. Getting your biggest possible tax refund has never been easier. And as a SafeAmerica Credit Union member you can save up to $15 on TurboTax. Click below to get started today!

The information in this article is 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.

Learn More

Footer

Home

Home

  • Contact Us
  • Find A Branch
  • About SafeAmerica
  • SafeAmerica Leadership
  • Careers
  • COVID-19 Updates

Services

Services

  • Online Banking & Bill Pay
  • Mobile Banking & Mobile Deposit
  • Direct Deposit
  • Mobile Wallets
  • VISA® Debit Card
  • STARS Telephone Banking
  • eStatements
  • Investment Management
  • View Your LPL Account
  • Enterprise Car Sales
  • Order Checks

Banking

Banking

  • Checking
  • MoveUP Rewards Program
  • Savings
  • Money Market
  • Certificates
  • IRAs
  • Account Insurance
  • Youth Program

Community

Community

  • College Scholarship Program
  • Events
  • CU@Work Program

Resources

Resources

  • Rates & Fee Schedule
  • Calculators
  • Educational Videos
  • Financial Education
  • Discount Programs
  • Newsletter
  • Switch Kit
  • Travel Notification Form
  • Blog
  • Forms & Applications
  • Secure Document Upload
  • Financial Hardship
  • Foreclosure Prevention Strategies
  • Privacy
  • Disclosures
  • Report Website Errors

Loans

Loans

  • Auto Loans
  • Home Loans
  • VISA® Credit Card
  • Personal Loans & Lines of Credit
  • Student Loans
  • Refinance Your Existing Loan
  • VISA® Balance Transfer
  • Vehicle Release Information
  • Skip-A-Pay Program
  • Make A Payment

Protection & Insurance

Protection & Insurance

  • Auto, Home & Life Insurance
  • Accidental Death Insurance
  • Long-Term Care Insurance
  • Debt Cancellation
  • Vehicle Protection
  • Verify Insurance

Buttons

Follow Us

Follow Us

Facebook Twitter LinkedIn Instagram

Phone

(800) 972-0999

  • No. California: (925) 734-4111
  • Lost or Stolen Card 
  • Debit and Credit: (833) 933-1681

Routing Number: 321171757

NMLS#: 746366

Log In »

Logos

SafeAmerica is an Equal Housing Lender American Share Insurance Logo

Your savings insured to $500,000 per account. By members’ choice, this institution is not federally insured, or insured by any state government.

© 2023 SafeAmerica Credit Union. All rights reserved.

We use cookies to give you a more relevant browsing experience and improve our website. Using this site means that you agree with our Use of Cookies Policy. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT