Remote work across state lines
The employer's state often claims the income (source rule) while the employee's state of residence also taxes it. Most states allow a credit to avoid double taxation, but the filing mechanics require part-year and non-resident returns.
Equity compensation
Tech roles heavily feature RSUs, ISOs, and ESPP programs. Each has different vesting, taxation, and sale mechanics that need active tracking.
1099 consulting alongside W-2
Many tech professionals moonlight as consultants or contribute to side projects on a 1099 basis. Combining a Schedule C with W-2 income opens Solo 401(k) and Self-Employed Health Insurance Deduction options.
Common questions
- Which state taxes my remote work income?
- Generally the state where the work is physically performed, with some exceptions for 'convenience of the employer' states like New York. Your resident state also typically taxes your worldwide income with a credit for tax paid elsewhere.
