The coronavirus pandemic has been motivating factor for some freelancers who have moved to avoid being in a virus hotspot or to be closer to family. While it can be advantageous to move in some regards, it may also affect your tax situation. It’s important to know what is considered an official “move” and how it may impact your local, county, and state tax obligations.
For example, I have received a lot of calls from freelancers telling me that they moved out of New York City and therefore don’t want to pay New York State or New York City taxes (New York City charges 2-3% income tax). My answer to them is simple: Just because you have been living out of state for a few months doesn’t mean you have moved — at least not in terms of state and local tax laws.
From a tax perspective, if you retain your residence in a particular state but live temporarily elsewhere, you are merely living out of state. That isn’t a move that absolves you from paying taxes in your primary geographic location. In fact, if you own a freelance business, it may actually open you up to having to pay tax in