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Summary:

Telecommuters whose employers are based in one state but who work out of another can run into tax headaches, as both states claim a portion of their pay. Now, it appears congress is making another effort to eliminate the double bill for remote workers.

Telecommuter Tax Fairness Act

As we’ve reported before, telecommuters whose employers are based in one state but who work out of another can run into tax headaches, as both states try to claim a portion of your pay. Now, it appears congress is making another effort to eliminate the double bill for remote workers.

The two senators from Connecticut, a hotbed of remote work double taxation for professionals employed by companies in nearby New York who actually do their jobs from their leafy Connecticut communities, introduced a bill to eliminate the double penalty this week, according to a blog on political site The Hill.  The post by Pete Kasperowicz reports:

Sens. Joe Lieberman (I) and Richard Blumenthal (D) said the Telecommuter Tax Fairness Act, S. 1811, would help encourage telecommuting, which could create jobs, relieve traffic congestion and reduce the demand for gasoline.

“Although most states tax telecommuters on the percentage of time worked within that state, a few other states tax 100 percent of the income of nonresident teleworking employees whose companies are based in their state, regardless of the amount of time they are physically present in that state,” the two senators said.

“Consequently, because telecommuters’ home states can also tax the income earned at home, workers nationwide are threatened with double taxation on that income,” they added. “This double tax risk puts telecommuting out of reach for many Americans.”

Kasperowicz offers no information on how likely it is that the proposed legislation will actually become law, but as the bill was introduced at least as early as 2009 and never made it out of committee, it doesn’t appear that being a common sense measure is enough to ensure swift passage.

If you’re feeling fired up to support the bill, there is a petition online.

Does the government do enough to support telecommuters?

Image courtesy of Flickr user Enter The Story.

  1. RT @FutureWorkforce: Sign the petition to help eliminate dual tax on telecommuters http://t.co/sUpzEQJj

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