Most people don’t want to be tracked by apps or websites for privacy reasons, but there are those who actively want their location to be constantly tracked for tax reasons – and there are apps that meet that need …
The New York Times explains that high-tax states are often suspicious of a high earner claiming to have left the state to live elsewhere.
As the executive director of a private equity firm, Jeff Sheu is exactly the type of high earner California doesn’t want to lose. If people leave in its tax bracket, the state will likely check them out to make sure they really left.
With the May 17th tax filing deadline approaching, people who have moved to another state or are more remote workers need to be extra vigilant with their tax records. For Mr. Sheu, this is an app on his smartphone that constantly tracks him with the help of location services. What he sacrifices in privacy he gains in peace of mind, knowing that he can prove exactly when and where he was in a particular state should the California tax authorities look for him.
Low-tax countries are not happy when large taxpayers leave. Enter the need to meticulously keep track of where you are all the time.
Given the pandemic where more people can work from anywhere, what used to be a problem only for the highest earners may also be a problem for those on lower incomes. If you live in one state but work for a company based in another, you may need to provide evidence of this.
Enter apps that track and record your location so if you ever need to prove where you live and work, you have the evidence.
These apps work on a subscription model and are inexpensive. For example, TaxBird costs $ 34.99 per year. After a 90-day free trial, TaxDay charges users $ 9.99 per month. Monaeo is more geared towards high earners and offers more options for its service, charging $ 99 per month or $ 999 per year.
“We’ve seen our no-ad app quadruple in the past year,” said Jonathan Mariner, founder and president of TaxDay, who was self-audited while working for Major League Baseball in New York but living in Florida
The play also explains how states are fighting for tax sovereignty for those who live in one state, usually work in another, but currently work from home.
FTC: We Use Income Earning Auto Affiliate Links. More.
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