It is very unfortunate, that many individuals have lost their employment, or if self-employed, were required to close their business as a result of COVID-19. For many who are still working, their home has become their workplace. Many have been busy adapting and adjusting to this “new norm.” With all that is going on, many are not able to just breathe and fully acknowledge how much life has changed. However, I wanted to take this time to encourage those who are working from home to review their payroll & time information to ensure that it is accurate.
So, why am I encouraging you to do this? Because you could potentially save money on taxes! Let me explain. It is not uncommon to find that some individuals live in one state and commute to a neighboring state for employment. For these individuals, they could find themselves paying taxes for two states. It is also possible that even if you work in the state in which you live, you may have to pay for city/locality taxes, if your primary employer work location is within city limits. If you are now working from a location outside of your primary work location, ensure that your payroll and time information has been adjusted to reflect this. This will temporarily stop the deduction for city/locality taxes, and/or the second state taxes. As a result, you will take home more money per paycheck. Once you return to your regular work location, then you can resume paying these taxes.