Remote work taxes for US-resident tech workers

US federal tax treats remote work like any other employment: the W-2 income lands in the same bucket regardless of work location. ## State tax The complication is state tax. Working remotely from a state different from the employer's location may create tax obligations in both, depending on each state's nexus rules. ## Convenience of the employer rule A handful of states (New York, Pennsylvania, Delaware) apply the convenience of the employer rule, taxing remote workers as if they worked at the employer's location. This can produce double taxation that requires credit claims to resolve. ## Foreign-resident US citizens US citizens working remotely from abroad still owe US tax on worldwide income. The Foreign Earned Income Exclusion (around 130 000 USD in 2026) and Foreign Tax Credit reduce double taxation.