Did you work remotely in a different state from your employer in 2021? While many states offered leniency during 2020 related to the pandemic, those breaks are going away, so remote workers may need to check out the precise rules for the state or states they resided in during 2021. States don’t follow any kind of uniform rules about taxing income earned in that state, so 2021 may be more complex than 2020. Whichever state you are a resident of will tax a portion of your income, no matter where you were when you earned it. Some states allow nonresidents to work there for 30 days or more before employers are required to withhold state taxes, while others have a wage-based threshold, and still others have no income tax. Several neighboring states have reciprocal agreements so that employees who work in one state but live in the other only pay tax where they live.

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