[Katouuu]

Hello,

I have a small question...

We are thinking of moving to Florida to be closer to our family. We live in CA at the moment and my husband's job is now remote.

The company is in California. Will he have to pay CA income tax even tho he would be working from FL?

Thanks!

[SCGAFL]

You pay income tax based on where you live.

In your case, he will have to pay CA income tax.

[kidyankee764]

If he is a FL resident, he will not be paying state income tax to the state of California. And, FL has no state income tax, so it’s an instant raise for him.

[beachmouse]

This is one of those 'consult your HR department' questions because he could get hit with a tax bill if he flies in for meetings a couple times a year. Pro sports teams have accountants on staff whose sole job responsibility is to deal with the 'there for 10 games this year' income tax questions.

[davephan]

Originally Posted by Katouuu

Hello,

I have a small question...

We are thinking of moving to Florida to be closer to our family. We live in CA at the moment and my husband's job is now remote.

The company is in California. Will he have to pay CA income tax even tho he would be working from FL?

Thanks!

You might also want to consider the risk that management might put an end to the remote working in the future at any point in time. Then you'd be stuck with the situation where you have to physically move back to California, or commute periodically between California and Florida, or quit your California job and find another job to keep living in Florida.

Also, another thing to consider is that some companies might pay people less money if they choose to live in a lower cost of living state. So, your income could be reduced if you work a California job remotely from Florida. Or, maybe the company would pay you the same, then you'd have effectively a boost in your effective income.

It would be wise to have a buffer of money to use if you get stuck with the situation where you have to either move back to California, or go for a period of time without a job, if management decides to cut or reduce telecommuting.

In my case, I was telecommuting almost completely, and I thought I would be able to work from Florida during the winter months, but upper management, who knew nothing and were clueless about the IT work that was being done, made the decision that they had to see people physically working in the office, even though the work could be done from anywhere. So, you have to be willing to live with the risk that the remote work can be ened at any time in the future with little to no warning.

[slduvall]

Originally Posted by beachmouse

This is one of those 'consult your HR department' questions because he could get hit with a tax bill if he flies in for meetings a couple times a year. Pro sports teams have accountants on staff whose sole job responsibility is to deal with the 'there for 10 games this year' income tax questions.

This!!! In most cases, if remote work AND a move is approved by your company, then they change your state of residency. I worked in HR and was a remote employee who relocated by choice to FL. That being said they may also not approve it for a variety of reasons - health insurance and other things. Also depends on what you do for a living - are there different liabilities that open up the company to a lawsuit if you are located in another state? It opens up the employer to pay corporate income tax in the state etc. It is becoming more the norm these days for sure, but some laws may not have caught up.

Also a big factor to consider is your salary. If I pay you $$$ to live in expensive CA and you relocate to FL and can live in a much less expensive area I would not be inclined to continue to pay you $$$.

This whole covid remote thing is going to see a lot of changes and the tax situation didn't really come into play as it was a necessity. But as we all start gearing up for the 2020 tax season there could be some surprises unless some laws are waived or overlooked.

[Fredesch]

If you move to Florida, you will not have to pay state income tax on your husbands salary. One issue you can run into is the employer provided health insurance may not be valid in Florida. That is - you can't be a Florida resident and have a California health plan while residing in Florida. Health care sold to Florida residents must be licensed and regulated by Florida. You also need to know whether your company's HR is equipped to handle non California employees. If your husband's employer has employees in Florida you should have no issues.

I have worked remotely for 15 of the last 16 years. When our youngest child graduated from high school we moved to Florida. My employer at that time was a huge corporation with employees in Florida and the only thing I had to do was go online to corporate HR, change my address and sign up for a Florida health plan. They stopped taking out state income tax with my next paycheck.

A couple of years later, I was laid off and a California non-profit wanted to hire me, but I would have been their only non-California employee. Since I was unwilling to move, that fell apart and I ended up with a Florida employer.

Good luck. Working remotely from Florida is great.

[logybogy]

In my case, I was telecommuting almost completely, and I thought I would be able to work from Florida during the winter months, but upper management, who knew nothing and were clueless about the IT work that was being done, made the decision that they had to see people physically working in the office, even though the work could be done from anywhere. So, you have to be willing to live with the risk that the remote work can be ened at any time in the future with little to no warning.

This is true. Everything could be hunky dory for years and then the CEO changes and they say remote work has caused innovation to suffer and we now require all employees work out of the office at least 4 days a week, etc. This happened at Yahoo a number of years ago with a CEO change and caused a major stink. It also happens in government organizations as administrations change.

You can't count on remote work being a 100% guaranteed thing forever, so there is always some risk. This is why I would look hard as a remote employee wherever I decide to move to has a decent enough job market in my field that I can find secondary employment if my current employer takes away my remote work status or I just decide I need a change down the road.

[lookingaround12345]

Seems to me the OP simply wanted the tax ramifications of the situation. I don’t think there is any reason to debate the pros and cons of remote working.

[wizrap]

Originally Posted by Katouuu

Hello,

I have a small question...

We are thinking of moving to Florida to be closer to our family. We live in CA at the moment and my husband's job is now remote.

The company is in California. Will he have to pay CA income tax even tho he would be working from FL?

Thanks!

Your husband should be able to check with his employer as I would assume they would be responsible for state income tax withholding. I was curious and did a Google search and there’s an article in Nerdwallet that says a non-resident with income from California is subject to state income tax. But to be sure, double check with his employer or even your accountant.