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This would be a spectacularly bad idea. Renting a PO box (or other front address) in a high cost location such as SF or NYC is going to open you up to tax liab

This would be a spectacularly bad idea. Renting a PO box (or other front address) in a high cost location such as SF or NYC is going to open you up to tax liability there. At the same time, your actual legal state of residence is also going to want their share. You might get lucky, with your state of residence giving you credit for taxes paid in another state. But that’s not a given. Federal plus multiple states tax returns are a PITA. But the biggest reason not to do it is that you’re presumed to be local: How many times are you going to “enjoy” paying walk up airfare from Raleigh Durham to SF because you need to give an in-person presentation the next day and you were assigned because you’re the only person on the team who isn’t remote?

ptero 6y ago
I think the (perfectly sensible) idea is to keep "working" from SF to get a large bump in salary from Facebook (or others) that should more than offset the higher taxes. It just happens that your living expenses dropped because you are now sharing space with a bunch of other developers in nano-flats (in a converted warehouse with a huge VPN relay pipe). In reality you are working from your second home (say, a vacation property at some cheaper place). I am sure it is somewhat irregular, but I am not sure it is illegal and while 100% against FB policy I do not think they can really act against you without FBI-style anti-employee snitching, which can easily backfire.
harryh 6y ago
Renting a PO box (or other front address) in a high cost location such as SF or NYC is going to open you up to tax liability there. Fact Check: false. Local taxes are owed based on the physical location the work is done. Though there are many other reasons that this is a bad idea.
- wan23 6y ago
  You should fact check your fact check. New York and California income taxes are based on residency. If you live in one of these states and work in a different state, then you will owe income tax to your home state. New York City also has its own income tax which is also based on residency in the city.
  - harryh 6y ago
    Renting a PO Box doesn't establish residency.
- dragonwriter 6y ago
  > Local taxes are owed based on the physical location the work is done. Actually, state law varies; it's quite possible for taxes to be due in both the state in which work is done and the employee’s state of residence, or either one of those alone, or neither. See, e.g., https://www.americanpayroll.org/compliance/compliance-overview/hot-topics/multi-state-taxation https://www.americanpayroll.org/compliance/compliance-overvi...
  - harryh 6y ago
    Ya, I glossed over some details there. However, the main point I was trying to get at is that a PO box doesn't mean bupkis for this question.

ptero 6y ago

I think the (perfectly sensible) idea is to keep "working" from SF to get a large bump in salary from Facebook (or others) that should more than offset the higher taxes. It just happens that your living expenses dropped because you are now sharing space with a bunch of other developers in nano-flats (in a converted warehouse with a huge VPN relay pipe). In reality you are working from your second home (say, a vacation property at some cheaper place). I am sure it is somewhat irregular, but I am not sure it is illegal and while 100% against FB policy I do not think they can really act against you without FBI-style anti-employee snitching, which can easily backfire.

harryh 6y ago

Renting a PO box (or other front address) in a high cost location such as SF or NYC is going to open you up to tax liability there. Fact Check: false. Local taxes are owed based on the physical location the work is done. Though there are many other reasons that this is a bad idea.

wan23 6y ago
You should fact check your fact check. New York and California income taxes are based on residency. If you live in one of these states and work in a different state, then you will owe income tax to your home state. New York City also has its own income tax which is also based on residency in the city.
- harryh 6y ago
  Renting a PO Box doesn't establish residency.
dragonwriter 6y ago
> Local taxes are owed based on the physical location the work is done. Actually, state law varies; it's quite possible for taxes to be due in both the state in which work is done and the employee’s state of residence, or either one of those alone, or neither. See, e.g., https://www.americanpayroll.org/compliance/compliance-overview/hot-topics/multi-state-taxation https://www.americanpayroll.org/compliance/compliance-overvi...
- harryh 6y ago
  Ya, I glossed over some details there. However, the main point I was trying to get at is that a PO box doesn't mean bupkis for this question.