Remote Work Layoffs Are Different
As a remote worker, your layoff situation is unique. You may live in a different state than your employer, face complex tax situations, and have different unemployment filing requirements. In 2026, 58% of remote workers work for companies based in a different state—this guide addresses your specific challenges.
Which State Do You File Unemployment In?
This is one of the most confusing aspects of being laid off as a remote worker. The rules vary, and filing in the wrong state can delay your benefits.
The General Rule
You file for unemployment in the state where you physically worked—which for remote workers, is usually the state where you live. However, there are exceptions based on where your employer paid unemployment taxes.
Check Your Pay Stub
Look at your pay stubs or W-2. Which state was unemployment insurance (SUI) withheld for? That's typically the state where you'll file. Most employers register you in your state of residence, but not all do.
Common Scenarios
Scenario 1: Live & Work Same State
Example: You live in Texas, employer is in California, you work from home in Texas.
File in: Texas (if employer paid TX unemployment taxes)
Verification: Check W-2 Box 15-17 for state UI info
Scenario 2: Employer Didn't Register You
Example: You live in Florida, employer only registered you in their HQ state (New York).
File in: New York (where taxes were paid)
Note: You may need to prove work location
Scenario 3: Recently Relocated
Example: You moved from California to Nevada mid-year.
File in: Likely the state with more wage credits
Note: May need to file combined-wage claim
Scenario 4: Cross-Border Worker
Example: You live in New Jersey, occasionally went to NYC office.
File in: Based on where majority of work occurred
Note: Could be either state depending on specifics
Steps to File Correctly
- Check your W-2: Look at state wages and state unemployment info
- Contact your HR: Ask which state(s) you were registered in for UI
- File in your state first: If they reject you, they'll tell you why
- Keep records: Document your work location and any state travel
- Consider combined-wage claims: If you worked in multiple states
Multi-State Tax Implications
Remote workers often face complex tax situations, especially during a layoff year when income and work locations may change.
Tax Issues to Be Aware Of
- State income tax in employer's state: Some states tax non-residents working for in-state employers
- State income tax in your state: You usually owe taxes where you live
- Double taxation credits: Most states offer credits to avoid paying twice
- City/local taxes: Some cities (NYC, San Francisco) have local income taxes
- Nexus issues: If you worked from multiple states, filing can get complex
The Convenience Rule (Beware!)
Some states (notably New York, Pennsylvania, New Jersey, Delaware, and Nebraska) have a "convenience of the employer" rule. If your employer is based there and you worked remotely for your convenience (not theirs), you may owe that state's income tax even if you never worked there. This affects your tax liability even after layoff for the current year.
States Without Income Tax
If you live in one of these states, your situation is simpler:
- Alaska
- Florida
- Nevada
- New Hampshire (no tax on wages)
- South Dakota
- Tennessee (no tax on wages)
- Texas
- Washington
- Wyoming
What to Do for Taxes
- Keep records of where you physically worked each day
- Save any remote work agreements or documentation
- Consult a tax professional if you worked in multiple states
- File all required state returns, even if you think you don't owe
- Claim appropriate credits to avoid double taxation
Should You Relocate for Your Next Job?
Being laid off is an opportunity to reconsider where you live. With remote work still prevalent but changing, here's how to think about relocation:
Cost of Living
Moving to a lower-cost area stretches your savings and any severance further
Housing Costs
Home prices and rents vary dramatically—a $2,000/month SF apartment rents for $800 in many markets
Tax Burden
Living in a no-income-tax state can save 5-13% of your income
Job Market Access
Proximity to tech hubs or industry centers can help with hybrid roles
Questions to Ask Before Relocating
- Will moving limit your job options (if companies are going hybrid)?
- What's the local job market like if remote work becomes less available?
- Do you have a support network in the new location?
- What are the state's unemployment benefits if you're laid off again?
- Will your professional network be harder to maintain?
- What's the time zone compatibility with major employers?
Home Office and Equipment Considerations
Company Equipment
What happens to the laptop, monitors, and other equipment your company provided?
- Return policy: Most companies require returning equipment (they'll send a shipping box)
- Negotiate to keep: Many companies will let you keep or buy equipment at depreciated value
- Timing: Usually 1-2 weeks after your last day to return items
- Data: Back up any personal files before wiping the device
Ask to Keep Your Equipment
Many companies prefer not to deal with return logistics. Ask if you can purchase your laptop at book value (often $100-300 for a 2-year-old machine). If they're doing mass layoffs, they may just let you keep it.
Tax Deductions for Home Office
As a W-2 employee, you generally cannot deduct home office expenses on federal taxes (this changed in 2018). However:
- Some states allow deductions: California, New York, and others may allow state deductions
- If you go freelance: Home office deduction becomes available
- Internet and phone: Sometimes partially deductible at state level
- Keep receipts: You may need them for state taxes or future freelance work
Health Insurance as a Remote Worker
Health insurance options depend on where you live, not where your employer was based.
ACA Marketplace
Since you're buying on the marketplace in your state of residence:
- Plans and prices vary significantly by state
- Some states (California, New York, etc.) have their own exchanges with additional options
- Subsidies are based on your income and local benchmark plan
- Lower-cost states often have less competitive markets
COBRA Considerations for Remote Workers
- COBRA continues your exact same coverage
- Network may not be optimal if you live far from employer's HQ
- Cost is the same regardless of your location
- May be worthwhile if you have great coverage that's hard to replace locally
See our complete COBRA vs. ACA Health Insurance Guide for detailed comparison.
Finding Your Next Remote Role
The remote job market has evolved significantly. Here's where to find the best remote opportunities in 2026:
Top Remote Job Boards
Companies Known for Remote Work in 2026
- Fully Remote: GitLab, Zapier, Buffer, Automattic, Doist, Basecamp
- Remote-First: Shopify, Coinbase, Spotify, Twitter/X, Airbnb
- Flexible/Hybrid: Microsoft, Salesforce, Atlassian, HubSpot, Slack
- Tech Giants with Remote Options: Meta, Google, Amazon (varies by role)
Remote Job Search Tips
- Specify your time zone: Employers want to know your working hours
- Highlight remote experience: Emphasize self-management and async communication
- Mention your setup: "Dedicated home office with reliable high-speed internet"
- Be flexible on hybrid: Some roles require occasional in-person meetings
- Understand location restrictions: Some "remote" jobs are limited to certain states
Hybrid Work: The New Norm
Many companies have shifted from fully remote to hybrid models. Understand what this means for your job search.
Types of Hybrid Arrangements
| Model | Description | What to Expect |
|---|---|---|
| Flexible Hybrid | Come in when needed | Maybe 1-2 days/month for meetings |
| Structured Hybrid | Set days in office | 2-3 days/week in office required |
| Remote + Quarterly | Remote with gatherings | Fly in for quarterly team weeks |
| Office-Centric | Primarily in-person | 4-5 days in office, remote "allowed" |
Read the Fine Print
Many jobs advertised as "remote" actually require you to live within a certain distance of an office for occasional in-person work. Always clarify the expectations before accepting an offer, including travel requirements and location restrictions.
Going Freelance or Contract
Layoff can be a good time to consider freelance or contract work. Remote work makes this easier than ever.
Advantages of Freelancing
- Work from anywhere with no geographic restrictions
- Set your own rates and hours
- Diversified income (multiple clients)
- Home office expenses become tax-deductible
- Choose projects that interest you
Challenges to Consider
- No employer-provided health insurance
- Must pay self-employment taxes (additional 7.65%)
- No paid time off or benefits
- Income can be irregular
- Must handle your own business admin
Freelance Platforms for Remote Work
International Remote Work Options
If you're untethered by a layoff, you might consider working remotely from abroad. Many countries now offer digital nomad visas.
Popular Digital Nomad Destinations (2026)
- Portugal: Digital nomad visa, EU access, affordable, great weather
- Spain: New freelancer visa, growing remote work hub
- Mexico: No visa needed for 6 months, CDMX is a digital nomad hub
- Thailand: Low cost, good infrastructure, popular with tech workers
- Croatia: Digital nomad visa, beautiful coastline, EU access
- Estonia: E-Residency program, digital nomad visa
- Costa Rica: Rentista visa for remote workers
Tax Implications of Working Abroad
As a US citizen, you must still file and potentially pay US taxes even while living abroad. However, the Foreign Earned Income Exclusion (FEIE) can exclude up to ~$126,500 of foreign-earned income in 2026. Consult a tax professional who specializes in expat taxes before making the move.
Things to Consider
- Time zone compatibility: Can you maintain reasonable overlap with US employers?
- Internet reliability: Remote work requires stable, fast internet
- Health insurance: You'll need international health coverage
- Legal work status: Make sure you have the right visa
- Banking: Keep US accounts; open local accounts for daily spending
- Employer policies: Many companies don't allow international remote work
Networking Without an Office
Remote workers often lack the in-person networking opportunities that come with office work. Here's how to build and maintain your professional network:
Virtual Networking Strategies
- LinkedIn engagement: Comment thoughtfully on industry posts, share insights
- Virtual coffee chats: Reach out to connections for 15-minute video calls
- Slack communities: Join industry-specific Slack groups
- Online events: Attend virtual conferences, webinars, and meetups
- Twitter/X: Engage with thought leaders in your industry
- Discord servers: Many professional communities have moved here
In-Person Opportunities
- Coworking spaces: Great for local networking even if you work remotely
- Local meetups: Attend tech meetups, industry events in your area
- Conferences: Worth attending in person for networking value
- Alumni events: University and former employer gatherings
Remote Work Trends in 2026
Understanding the current landscape helps you position yourself for success:
What's Changed Since 2020-2022
- Return to office push: Many companies have mandated hybrid or full RTO
- Remote work still common: ~30% of workdays are now remote (vs. ~5% pre-pandemic)
- Geographic pay adjustments: More companies adjust pay based on location
- Async work skills valued: Companies seek workers good at remote collaboration
- Meeting fatigue: Best remote workers minimize meetings, maximize async work
Skills That Matter for Remote Work
- Written communication: Clear, concise async communication
- Self-management: Ability to work independently without oversight
- Documentation: Keeping records others can reference
- Video presence: Presenting well on camera for meetings
- Time management: Balancing work and life without office structure
- Cross-timezone collaboration: Working effectively across time zones
Highlight Remote Competence in Your Resume
Add a "Remote Work" section or skills that demonstrate your remote work capabilities: async communication, documentation practices, tools you're proficient in (Slack, Notion, Loom, Zoom, etc.), and results you achieved while working remotely.
- Update LinkedIn to specify remote work preference/experience
- Set up or improve your home office setup
- Document your remote work achievements for interviews
- Join 2-3 relevant Slack/Discord communities
- Research companies with genuine remote-first culture
- Clarify any location restrictions in job listings
- Consider freelance as backup while job searching
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