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The tax headaches of working remotely

Last year, Ariele Doolittle, a tax lawyer, got a call from a client who lived and worked in New York but was considering working remotely from California temporarily after his offices were shuttered in the pandemic.

Not a good idea, Ms. Doolittle told him.

California, she said, would tax his income because he was physically working there. And New York would probably tax his earnings as well. Plus, when he filed his New York resident tax return, the state probably wouldn’t give him a credit for the taxes he paid to California.

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