Telecommuters would only pay state income tax where they physically work
This bill would change how states can tax people who work remotely or in multiple states. It would stop states from taxing income earned when someone is physically working in another state. This means telecommuters would only pay state income tax for the time they are actually present in that state.
Today, some states can tax nonresident workers even if they are physically working in another state. This often happens using rules like "convenience of the employer." If this bill becomes law, states would be blocked from taxing income earned by nonresident individuals when they are physically present in another state. States also could not use "convenience of the employer" tests to claim someone is present for tax purposes.
HR 10142 · 119th Congress · AI Summary by gemini-2.5-flash · 10/10
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