Working remotely is becoming an increasingly popular option for people who want to have more control over their work-life balance. But there are a few things you should know about the tax implications of working from home before making the switch.
Remote Work and Taxes
When it comes to taxes, there are a few things to consider when it comes to working remotely. The first consideration is whether your remote job is full-time or part-time. If you are considered a full-time employee working remotely, your taxes will be handled in the same way as someone who works in an office. You will likely have income tax withheld from your paychecks, and you may be eligible for certain tax deductions.
If you are considered a part-time employee working remotely, you may be able to claim self-employment tax deductions. This can be a great way to reduce your overall tax bill, but you should speak with a tax professional to find out if this option is available to you and how it would impact your taxes.
No matter what type of remote job you have, it’s important to keep track of all of your income and any associated expenses. This information can help you stay organized and ensure that you’re reporting everything correctly come tax time.
Overall, the tax implications of working remotely can be complicated, so it’s important to consult with a professional to make sure you’re handling things correctly.
Another thing to consider when it comes to taxes and remote work is double taxation. Double taxation occurs when income is taxed both at the corporate and individual level. When it comes to remote work, this can happen if the company paying you is based in a different state or country than the one you live in.
Double taxation can be expensive and can significantly reduce the amount of money you take home each month. There are some steps that can be taken to help avoid double taxation, but it’s important to speak with a tax professional about what options are available to you.
Consult MKS&H for Tax Help for Your Remote Business
Working remotely can have a lot of tax implications, which is why it’s important to consult with a tax professional before making the switch. For example, if your remote job is considered full-time, you’ll be taxed as an employee. But if it’s part time, you may be able to claim self-employment tax deductions. So depending on your situation, working remotely may save you money in taxes or cost you more. One of the experts at MKS&H can help you manage the taxes of your remote business. Contact us today!
About MKS&H: McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by putting complex financial data into truly meaningful context. But deeper than dollars and data, our focus is on developing an understanding of you, your culture and your business goals. This approach enables our clients to achieve their greatest potential.