Work from Anywhere (WFA) has exploded in popularity over the last few years. While COVID-19 forced many offices to adapt in 2020 and 2021, the change seems to be growing roots; freelancers and 9-to-5 employees alike are opting for more work time out of the office.
So, how do you prepare your WFA clients for a surprise-free tax return in 2023? Here are some tips to get you started.
Determine how WFA applies to each client individually
Though the term is straightforward, WFA can mean different things to different people. One client could have the option of working remotely several days a week for their employer, while another could be a freelancer living out of a van.
The paperwork you'll need from each client will vary depending on these details. Keep in touch with your client to make sure you are clear on their WFA arrangements.
Check state and local legislation on nexus, statutory residency, and other WFA rules
Not all states treat WFA the same; in fact, few do. Be especially sure to know the rules if your client works in multiple states and take note of each.
If a client has a small business, take note of the nexus rules for any states they do business in. Traveling WFA clients should also prompt you to check residency rules for any states they spend more than 20 days in (as a rule of thumb).
Help your client make any necessary adjustments
Rules and regulations for WFA may come as a surprise to your clients, especially if those rules affect their taxes.
You can help immensely by guiding your clients through any adjustments they need to make, like paying estimated tax payments, setting aside money for taxes in multiple states, or getting their records in order.
Use GruntWorx to manage WFA records in a snap
As your paperwork power tool, GruntWorx can make all those WFA records easy to manage. Our technology can help you improve productivity without needing an extensive knowledge of the forms themselves (making it possible to pass document organization and data entry to support staff).
Come see us on the road!
GruntWorx is traveling for the NATP Tax Forums, and we would love to meet you! Register soon for a trade show or webinar to see how GruntWorx can make your 2023 tax season great.
