Telework and remote aren’t the same thing. Telework can be pulled at any time and you must report to the office. For telework, your SF-50 will list an office as your duty station. Remote lists your home as your duty station.
First you need to determine which you are then you need to talk to your supervisor/hr about relocating.
If your official duty station is Maryland, you still pay Maryland taxes. Thry will not pay you under Nevada. Each stste might have reciprocal tax agreements with neighboring area states like Maryland has one with Virginia so working in MD but taking out VS rates is allowed. Thst is not the norm.
you woukd have to be classified as remote either with your work site being home, or work site being in Nevada . For example some folks who work for a DC HQ office either work at home from Nevada or are classified as telework tethered to vegas or Reno.
As someone who's lived this, this isn't true. You pay taxes in the state you're a resident in, regardless of where you work. I used to have an official duty station of DC while living in NC, paid NC taxes.
Edit: misread your message, I'm not actually disagreeing with you, my b
You’re both right in a way. If both states have what is called a ‘reciprocal tax agreement’ then you only pay taxes in the state you live, while taxes are waived in the duty station state. If they do not have a reciprocal agreement, you pay taxes in both. For example, DC has a reciprocal agreement with every state, so if you live in West Virginia but your office is in DC, you would only pay West Virginia taxes.
They don’t care if you fly to your official duty station; they only care that you’re there in person in some agreed upon basis at least twice (per OPM; more will depend on your agency) per pay period.
You would need to obtain permission to relocate, as it would have an effect on payroll due to the locality pay change. You would pay taxes for the state in which you live if you were a remote employee.
State tax is based on your residency and/or your work location. If you’re a resident of Maryland but work in Nevada, you pay Maryland tax on all income. If you’re a resident of Nevada but work in Maryland, you pay tax on the wages earned while working in Maryland. If you’re a Nevada resident and only work in Nevada, you pay no state tax because Nevada has no state income tax.
State tax is based on where the income is sourced.
In most cases, this is where you physically perform the work. Meaning if your a resident of MD and you *physically work* in Nevada, you owe whatever your NV taxes are (nothing). Remote works the same...if you're living in MD performing work remotely for a company in NV, your income is considered MD sourced so you owe MD taxes on it.
If you're earning worldwide income while physically present in X state, then that income is considered X sourced income. Not counting exceptions for military members of course.
Only partially true.
More specifically, most (if not all) states have an agreement that if you paid taxes to another state (due to being physically present in said state while earning income remotely), then you get a tax credit in your resident state.
For example, if you're a CO resident and you temporarily visit MD (while working remotely), then you owe MD tax on income earned while in MD. CO then gives you a tax credit for the amount of taxes paid to MD.
So yes, your state of residence matters, but so does your physical location while earning that income. If those states are different, then both states have a claim to some amount of taxes from that income.
This means that where you're physically present when earning income is the *most* important factor.
You can be a resident of a state, but if you earn 100% of your income in another state your resident state will tax you little to nothing because you already paid tax to the state you were physically present in. This also means if you're visiting random states while remotely working, you technically owe tax to all those states - but barely anyone actually does this.
This is true to some extent, but you also have to watch out for those random state/localities that consider your income taxable if your company has a presence in their jurisdiction.
Case in point where I work - philadelphia considers your income taxable if the business has an office in the city and you remote into servers stashed there. Doesn't matter that you never step foot in the city, they want their cut. The reality though is the city can barely keep up with tax refunds with only 3 people reviewing everyone's refund requests so enforcement is basically self reporting
This isn't about taxes but just in case you aren't aware you will not get paid the same amount if you move. You current (the DC area) live in a high cola area and when you move and your become remote in a different area your cola is adjusted bases on the rate for that area. While I understand that there are a lot of areas where the cost of living is also much lower and that's can offset the pay difference, it's also something to keep in mind. I looked at the pay table for the Nevada locals they have Las Vegas and reno area listed and they are both about 12% less that DC area in pay. This could still work in your favor depending on the actual cost of living out there and the tax saving but if taking Navada aside if you move some other state that has no income tax id pay attention to more than just taxes. I hear Florida is getting expensive to live there.
Some partially right answers here. You will have to file taxes in the state you earned money and the state you reside unless the states have a reciprocity agreement. For example MD has agreements with VA and PA since so many people commute from those states. It is doubtful MD and NV have an agreement so you would have to file in both states.
Generally speaking you pay tax in the state you earned it, so Maryland. You may have to pay some state to NV also but generally not as much or nothing, it just depends on the state laws.
Also, locality pay is usually based on where you live. So you would get whatever the locality pay of NV not MD. Also, like someone mentioned, remote is different then telework. If you are telework that can change at any time and they may require you to come into the office. They won't pay for relocation or travel, thats on you as you decided to move. If you don't inform them you live in a different state and collect the wrong locality you can be fired and forced to pay the difference back. So talk to you management and HR people before moving.
Thanks! I’ve heard people only pay taxes to the state that they physically work. In that case, remote workers only pay taxes to where they live.
The reciprocity is for people who physically work in different state.
Am I understand this correctly?
That's *generally* how it works, but some states had some weird laws during Covid for remote work. Things like "if you're only working remote due to Covid, you still owe taxes to the state you were previously physically working within".
Note that your agency has to approve your move though. So you'll have to submit a request, and **if** they approve it you can move. Your locality will adjust to the new locality rate (which will probably be lower going from MD to NV), and you'll owe taxes to NV (which will be nothing).
Full Time Remote is your residence and whatever state you live in is on your SF50 correct? Then you'd pay whatever taxes to whatever state is on your SF50. HR or any Payroll peeps can correct me if I'm wrong.
Also, you would need to get approval from your management/agency to move if you're FTR wouldn't you?
Unless the states have a tax agreement, you pay in both states (where you live and where your agency is located), but most states will refund you any money that is taxed twice. Which state does the refunding probably depends on where you live (at least it did in my case).
Telework and remote aren’t the same thing. Telework can be pulled at any time and you must report to the office. For telework, your SF-50 will list an office as your duty station. Remote lists your home as your duty station. First you need to determine which you are then you need to talk to your supervisor/hr about relocating.
Yes I understand. Telework requires live within 50miles to the agency.
If your official duty station is Maryland, you still pay Maryland taxes. Thry will not pay you under Nevada. Each stste might have reciprocal tax agreements with neighboring area states like Maryland has one with Virginia so working in MD but taking out VS rates is allowed. Thst is not the norm. you woukd have to be classified as remote either with your work site being home, or work site being in Nevada . For example some folks who work for a DC HQ office either work at home from Nevada or are classified as telework tethered to vegas or Reno.
As someone who's lived this, this isn't true. You pay taxes in the state you're a resident in, regardless of where you work. I used to have an official duty station of DC while living in NC, paid NC taxes. Edit: misread your message, I'm not actually disagreeing with you, my b
I have the opposite experience. Live in one state but duty stationed in another. Feds take out state taxes for your duty location.
You’re both right in a way. If both states have what is called a ‘reciprocal tax agreement’ then you only pay taxes in the state you live, while taxes are waived in the duty station state. If they do not have a reciprocal agreement, you pay taxes in both. For example, DC has a reciprocal agreement with every state, so if you live in West Virginia but your office is in DC, you would only pay West Virginia taxes.
They don’t care if you fly to your official duty station; they only care that you’re there in person in some agreed upon basis at least twice (per OPM; more will depend on your agency) per pay period.
No, you pay income tax based on where you live. You’ll lose your DC locality adjustment though.
You would need to obtain permission to relocate, as it would have an effect on payroll due to the locality pay change. You would pay taxes for the state in which you live if you were a remote employee.
My agency is in MD, but I live in Florida and pay no state income tax.
State tax is based on your residency and/or your work location. If you’re a resident of Maryland but work in Nevada, you pay Maryland tax on all income. If you’re a resident of Nevada but work in Maryland, you pay tax on the wages earned while working in Maryland. If you’re a Nevada resident and only work in Nevada, you pay no state tax because Nevada has no state income tax.
State tax is based on where the income is sourced. In most cases, this is where you physically perform the work. Meaning if your a resident of MD and you *physically work* in Nevada, you owe whatever your NV taxes are (nothing). Remote works the same...if you're living in MD performing work remotely for a company in NV, your income is considered MD sourced so you owe MD taxes on it.
It’s only taxed on sourcing if you’re not a resident. States tax residents’ worldwide income, but only tax state-sourced income on non-residents.
If you're earning worldwide income while physically present in X state, then that income is considered X sourced income. Not counting exceptions for military members of course.
If you’re a resident of a particular state it doesn’t matter if you’re physically present in that state for that state to tax the income.
Only partially true. More specifically, most (if not all) states have an agreement that if you paid taxes to another state (due to being physically present in said state while earning income remotely), then you get a tax credit in your resident state. For example, if you're a CO resident and you temporarily visit MD (while working remotely), then you owe MD tax on income earned while in MD. CO then gives you a tax credit for the amount of taxes paid to MD. So yes, your state of residence matters, but so does your physical location while earning that income. If those states are different, then both states have a claim to some amount of taxes from that income. This means that where you're physically present when earning income is the *most* important factor. You can be a resident of a state, but if you earn 100% of your income in another state your resident state will tax you little to nothing because you already paid tax to the state you were physically present in. This also means if you're visiting random states while remotely working, you technically owe tax to all those states - but barely anyone actually does this.
This is true to some extent, but you also have to watch out for those random state/localities that consider your income taxable if your company has a presence in their jurisdiction. Case in point where I work - philadelphia considers your income taxable if the business has an office in the city and you remote into servers stashed there. Doesn't matter that you never step foot in the city, they want their cut. The reality though is the city can barely keep up with tax refunds with only 3 people reviewing everyone's refund requests so enforcement is basically self reporting
Philly is a wage tax, not an income tax. Politicians & lawyers.....
This isn't about taxes but just in case you aren't aware you will not get paid the same amount if you move. You current (the DC area) live in a high cola area and when you move and your become remote in a different area your cola is adjusted bases on the rate for that area. While I understand that there are a lot of areas where the cost of living is also much lower and that's can offset the pay difference, it's also something to keep in mind. I looked at the pay table for the Nevada locals they have Las Vegas and reno area listed and they are both about 12% less that DC area in pay. This could still work in your favor depending on the actual cost of living out there and the tax saving but if taking Navada aside if you move some other state that has no income tax id pay attention to more than just taxes. I hear Florida is getting expensive to live there.
Some partially right answers here. You will have to file taxes in the state you earned money and the state you reside unless the states have a reciprocity agreement. For example MD has agreements with VA and PA since so many people commute from those states. It is doubtful MD and NV have an agreement so you would have to file in both states. Generally speaking you pay tax in the state you earned it, so Maryland. You may have to pay some state to NV also but generally not as much or nothing, it just depends on the state laws. Also, locality pay is usually based on where you live. So you would get whatever the locality pay of NV not MD. Also, like someone mentioned, remote is different then telework. If you are telework that can change at any time and they may require you to come into the office. They won't pay for relocation or travel, thats on you as you decided to move. If you don't inform them you live in a different state and collect the wrong locality you can be fired and forced to pay the difference back. So talk to you management and HR people before moving.
Thanks! I’ve heard people only pay taxes to the state that they physically work. In that case, remote workers only pay taxes to where they live. The reciprocity is for people who physically work in different state. Am I understand this correctly?
That's *generally* how it works, but some states had some weird laws during Covid for remote work. Things like "if you're only working remote due to Covid, you still owe taxes to the state you were previously physically working within". Note that your agency has to approve your move though. So you'll have to submit a request, and **if** they approve it you can move. Your locality will adjust to the new locality rate (which will probably be lower going from MD to NV), and you'll owe taxes to NV (which will be nothing).
Full Time Remote is your residence and whatever state you live in is on your SF50 correct? Then you'd pay whatever taxes to whatever state is on your SF50. HR or any Payroll peeps can correct me if I'm wrong. Also, you would need to get approval from your management/agency to move if you're FTR wouldn't you?
Unless the states have a tax agreement, you pay in both states (where you live and where your agency is located), but most states will refund you any money that is taxed twice. Which state does the refunding probably depends on where you live (at least it did in my case).