July 30, 2021
With the COVID-19 pandemic shaking up the working world, it's definitely not abnormal to be living in one state and practicing therapy in another right now. If they aren’t choosing to see clients in person, some mental healthcare practitioners are moving locations and living in temporary housing. Some private practice therapists who used to drive to a different state for work no longer need to commute into high-traffic metro areas to get to the office (think New Jersey vs. New York).
COVID has forced therapists to handle the ways in which they work much differently, and with that, comes a natural effect on practice finances and taxation. Don't worry––just because you're living in one state and working in another doesn't mean you have to pay double to the IRS! Instead, you'll need to perfect the art of resident returns and non-resident returns.
If you're living in one state but practicing therapy and working with or seeing clients in another, here are some tips on how to file your tax return this year:
This information is important to be aware of now so you can handle your taxes in the pandemic, but will continue to be important as we move into a new working world post-COVID, where practices like tele-health will be much more common. We can't wait to see what's next!
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post.