It's becoming more and more common for people to move many times during their career, and also to work remotely. Each of these situations can have an impact on how and where you need to file your taxes. Thankfully we deal with this stuff all the time, so we can help you sort out the details and get things filed properly.
That said, there are some basics ideas to keep in mind to make things easier come tax time:
- If you work for employers who issue you W2s and you move from one place to another, make sure they have the right address and that you update them as soon as you know your move date. Example: You work for a company in Philadelphia and live half the year in Philly but then move to New Jersey in July. Make sure your employer knows about the move so they can file things correctly on their side. And then, when we do your taxes, most likely we'll need to file in both Pennsylvania and New Jersey for that year.
- For self-employed folks, you also want to keep track of the date you moved, and also have a sense of how much money you earned in one place versus another. Let's say you lived in Los Angeles for a few months of the year and then moved up to Portland. Again, we'll most likely file in two states for you, and it will be helpful to know how much of your freelance earnings came in while you were living in LA versus Portland.
- For folks who mix W2 and freelance work (that's a lot of us), just keep both points above in mind.
- The same is true for people who move to a new country. Whether you go from Brooklyn to Amsterdam or Buenos Aires to Chicago, try to keep a good handle on how much you earned in each place. Then, in our appointment, we'll ask for the important details to figure out the best tax situation for you.
A lot of people who move worry about getting double-taxed (i.e. the state or country you left still taxing you for the money you earned after you moved). Thankfully there are a number of credits we can make use of to help avoid that situation.
The most important thing is to let us know you've moved or have been working away from your home or permanent address. Every situation is unique, so we'll ask the right questions to figure out your specific situation.
When you’re ready to set up an appointment, create an account on BrassTaxes.com to get started.