Career

Working remotely from another state

Working from a different state than your employer changes tax, insurance and sometimes employment law. Mostly it is administrative, until it is not.

Career · EDU Aid Network

Income tax generally follows where the work is performed, which means working from another state can create a filing obligation there. Some state pairs have reciprocity agreements and some do not, and a few states apply rules that complicate it further for remote workers.

Unemployment insurance and workers' compensation are tied to the state where the work happens, so an employer has to be registered there. This is the part that most often makes an employer refuse a move, and it is an administrative cost rather than an objection to the person.

Employment protections frequently follow the worker's location too — minimum wage, overtime, leave entitlements, final pay timing. The more protective of the two states often applies, but which rules govern is a question worth having answered rather than assumed.

The practical advice is to raise it before moving, in writing. Many employers have a list of states they are set up to employ in, and finding out afterwards is a much worse conversation.

What to do next. Tell your employer in writing before you move, and ask a tax preparer about filing obligations in both states.
studentaid.gov outranks this page. Rules, figures and dates change between academic years. This is written to help you read the official sources, not to stand in front of them. Start there.
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