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.
ESPP lots and the discount
Employee stock purchase plans tax the discount as ordinary income, with the amount and timing depending on whether the sale is a qualifying or disqualifying disposition. Brokers routinely report the basis wrong on ESPP sales, which quietly taxes the discount twice unless the return adjusts it. We check every ESPP lot before it goes on the return.
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.
Side income, home labs, and equipment
Consulting income supports real deductions: hardware and home-lab equipment, software subscriptions, cloud services, a home office used exclusively for the work, and the business share of internet. W-2-only remote employees get none of that federally through 2025, so which bucket an expense belongs to matters as much as the expense itself.
Digital assets on the return
Crypto and other digital asset sales, staking income, and tokens received as payment are all taxable events, and basis tracking is the taxpayer's problem. Exchange tax forms are improving but still miss transfers between wallets. Clean records during the year beat reconstruction at filing time.
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.
- My broker's 1099-B shows a huge gain on my ESPP sale. Is that right?
- Often not. The reported basis frequently omits the discount you already paid ordinary income tax on. We adjust the basis on Form 8949 so it isn't taxed twice.
- Do I owe estimated taxes on my consulting side income?
- Once the side income creates a meaningful balance, yes. Or we raise your W-2 withholding to cover it, which is usually the simpler tool.
Related
Personal Income Tax Preparation
Federal and state 1040 preparation with year-round planning. We handle W-2, 1099, K-1, rental, and crypto income for individuals in Florida and all 50 states.
Tax Planning
Year-round tax planning for individuals and business owners. We project the year's income quarterly and model decisions before they become tax liabilities.
We also work with
Tax Services for Retirees
Social Security taxation, required minimum distributions, Roth conversion windows, income timing, and snowbird multi-state residency planning for retirees.
Tax Services for Snowbirds
Florida residency, the 183-day rule, Declaration of Domicile, part-year state returns, and homestead exemption for seasonal Florida residents and snowbirds.
Tax Services for Firefighters
Firefighter tax deductions: union dues, protective equipment, FLSA overtime, mileage, and second-job 1099 income and expenses. Remote filing in all 50 states.
Tax Services for Law Enforcement & Security Professionals
Tax deductions for law enforcement and security professionals: uniforms, training, vehicle use, and off-duty 1099 security work. Remote filing nationwide.