Taxes and working from home

If you “live in one state but work remotely for an employer based in another,” it could mean a bigger tax bill, said Jeanne Sahadi in CNN .com. Workers risk being double taxed if they live in one state but work for a company based in one of five states—New York, New Jersey, Delaware, Pennsylvania, and Nebraska—that apply a so-called convenience vs. necessity test to remote workers. If it’s determined “that working from home is a matter of convenience for you rather than a necessity for your employer,” you could be taxed on income both in the state where you live and in the state where your company is based. The good news: Many states give you a tax credit for any taxes you pay to another jurisdiction. Mortgage expenses are often higher on rentals than on owner-occupied homes, so try to purchase a home with at least three bedrooms. Those are often easier to lease than smaller homes. Carefully screen prospective tenants with the help of online tools or a property manager, paying careful attention to their past rental history. Familiarize yourself also with your state’s legal obligations for landlords.