Most Remote Workers Unaware Of Tax Implications, Poll Says

Over half of workers who have worked remotely during the novel coronavirus pandemic are not aware of the tax implications for telecommuting in their states, according to a survey conducted by the American Institute of Certified Public Accountants.

Of the 2,053 adults surveyed, 1,199 are currently employed and about 42% of the currently employed have worked remotely, according to the survey report, released Thursday. Of those who have worked remotely, 55% were not aware that they could face tax consequences if they fail to change their state tax withholding to reflect their remote work situation, according to the report.

Additionally, 47% of respondents who have worked remotely did not know each state has its own tax laws on remote work, and 71% did not know remote work in other states could impact the amount they owe, the report said.

The survey indicated that many people who have worked remotely from a state other than the state where their pre-pandemic workplace was located have done so across multiple states. 

The report noted that of the respondents who have worked out of state, 67% notified their employer of the state they were working out of and 51% tracked the days worked in each state. Additionally, 41% of respondents who have worked out of state changed their state income tax withholding, the report said.

The institute advised people who work remotely to also note that they may have to track whether they owe income taxes to local jurisdictions like cities, counties or school districts.

--Editing by Leah Bennett.

For a reprint of this article, please contact reprints@law360.com.