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Tax Impact of COVID-19 Relocation

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  • Tax Impact of COVID-19 Relocation

Ever since the pandemic stopped people in their tracks, we’ve noticed some interesting tax questions coming into our inbox.

Many of our clients have been relocating to other cities and states to make life easier for themselves. I mean, if everyone who works in an office is suddenly remote working, there’s no reason to stick around and stay cooped up in the house.

But what happens when you move? Here are some of the most common questions we get regarding state taxation:

  • Will I have to file tax return in multiple states?
  • Will I be double taxed by my state of residence as well as the state where my employer is located?
  • I will be renting out my former home – how will that impact my 2020 taxes? Should I pay estimated taxes?
  • Can I write off my moving expenses and home office?
  • What are the convenience rules in different state?
  • If I have stock or stock options granted in CA but I exercise or sell in a different state, will CA still tax me on the gain?

Because the answers are different on a case-by-case basis, it is important to let us know your live/ work arrangements so we can make sure you are not unfairly taxed. Dimov Tax works with clients in all 50 states. We will ensure that you do not double-pay on state taxes. Contact us now if you have any questions.