The results of a new survey indicate CPAs may find themselves spending a lot of time educating clients about the state tax implications of working remotely during the pandemic.
The survey, conducted for the AICPA, found 55% of respondents who worked remotely this year aren’t aware of the potential tax consequences of not changing their state tax withholding to reflect where they work remotely.
Nearly half (47%) the respondents don’t realize each state has its own laws regarding remote work, and only 46% know the number of days they spend working in a different state than where their workplace is could affect their tax liability.
Reaching out to clients now and alerting them of potential issues could save CPAs time next year, one expert recommends.