State Tax

Like most people in the Mid-Atlantic states, I spent most of last week stuck at home as a virtual prisoner of the snow storms that pounded our area beginning on February 5.   During this period, the “busy season” for accountants and tax preparers, these lost work days could have been disastrous.  Fortunately, by using computer technology, most of the professionals in my firm were able to remain productive and work remotely from home. 

With the proliferation of computer technology and high speed internet connectivity over the past 20 years, telecommuting has become a more significant and pervasive movement in our economy.  Working from home or telecommuting has become routine for many workers.  For employers this technology can reduce costs for office space and aid in the recruitment and retention of quality personnel.  Likewise for employees, the use of telecommuting can not only aid in the balance of work and life, but also greatly expand the potential market for their services.

As the roads were finally cleared and I returned to the office, I was greeted by the February edition of The Tax Adviser which contained an excellent article by Ilya Lipin, discussing some of the tax ramifications of telecommuting.  Given my recent, albeit temporary foray into the virtual workplace, I was inspired to share some of the excellent information provided by Mr. Lipin as well as a few thoughts of my own regarding the tax ramifications of telecommuting.