It’s another case of what you don’t know can hurt you, or at least take you by surprise.
Fifty-five percent of Americans who have been working remotely during the coronavirus pandemic were unaware that a failure to change their state tax withholding to reflect their remote work situation could result in tax consequences, according to a new survey commissioned by the American Institute of CPAs.
Related: Tax Planning in an Election Year
The survey showed that among the 58% of Americans who are currently employed, 42% have worked remotely since March, and 25% are still doing so.
“Working remotely can have tax implications that vary from state to state,” AICPA’s director for tax policy advocacy Eileen Sherr said in a statement.
“The sudden and unplanned increase of many employees working remotely due to the pandemic has left many of them unaware of their current state tax liabilities and any additional steps they need to take now and at tax filing time.”
The Harris Poll conducted the survey between Oct. 6 and Oct. 8 among 2,053 U.S. adults.
The survey also found that 47% of those who have worked remotely during the pandemic were not aware that each state has its own tax laws related to remote working.
In addition, 71% were not aware that working remotely in other states can affect the amount of state taxes owed. And 54% did not know that the number of days worked out of the state where their physical workplace is located may also affect the amount of state taxes owed.