Will TurboTax address the issue of working from home in a different state from your employer in the new version for 2020?

[cheps]

I would like to see a step-by-step section that specifically assists with this item.

[rjs]

We'd all like to have step-by-step instructions for handling this situation. So would the employers. Unfortunately, it depends on the particular states involved. Each state has different rules, and there could be conflicting rules in particular pairs of states. What's worse is that this is a new and unanticipated situation. Some states have made special provisions for it, but many states have not determined how they are going to handle it. It's a big mess.

[xmasbaby0]

This is a really good question.  We know we will be flooded with questions about this issue as people begin working on 2020 tax returns.   It will be really complex as the tax laws vary so much from state to state.  In some states it won't matter if you worked remotely, and in some you will be taxed by the state you worked from home in, in some you will be taxed by the state of your employer.....etc. etc. etc. and the possible combinations are mind-boggling.   We have already seen questions from people who have moved around the country from state to state and then another state as they work from "home" but are really living with various relatives here and there, etc. instead of staying in the state where they normally work.  I will post this thread to the moderators to ask what -- if anything-- we will have to help all of us navigate this in a few months.

[Opus 17]

These situations are always included in the program just not explicitly.

The key question is, did you change your domicile?  Your domicile is your permanent home.  It is where your significant family, cultural and legal ties are, like your church, doctor, dentist, and so on.  If you did not change your domicile, then you are working temporarily away from home and you owe a non-resident tax return to the state you are temporarily living in and a resident return to the state of your permanent domicile.  You get a tax credit on the resident return so that your total state tax bill won't be higher than whichever state as the higher rate.

If you actually changed your permanent domicile -- you moved permanently, and won't be returning to your previous state even after the pandemic is over, then you just moved, and that is already covered in the program.

I agree that guidance on this would be useful.