Connecticut Rep. Works on Bill to Help Telecommuters

We all know about the advantages of working from home.  You save money, time and the hassle of a long commute.  Studies also show that workers with flexible schedules are happier and more productive.  However, telework has its downfalls.  For Connecticut workers, the disadvantages of telecommuting become glaringly apparent at tax time.  The majority of Connecticut telecommuters work for companies based in New York.  Because these employees are working across state lines, their income is being taxed by both states.  “Both states are laying claim to the same wages,” said Nancy Belson Goluboff, a New York tax attorney.  To make sure that Connecticut workers aren’t overburden by taxing, Rep. Jim Himes is pushing for a Congressional bill that will protect telecommuters from getting taxed twice.

The Telecommuter Tax Fairness Act was created to stop New York from levying such heavy taxes on Connecticut telecommuters.  The bi-partisan bill was first introduced in May of 2009 but has been stuck in committee since then.  Rep. Himes wants to jumpstart progress and help stimulate Connecticut’s economy.  “It would draw more business to Connecticut, both large and small, if there was more clarity about taxation,” Himes said. “It would be a real boon.”

Supporters of the bill hope it will bolster Connecticut’s ailing job market and eliminate some hurdles to increasing telecommuting opportunities.  According to studies by the University of Connecticut, many employers don’t offer telecommuting options because of taxation issues.  The bill would help bring clarity to these issues and make it simpler for employers to implement telecommuting policies.  The Federal Communications Commissions advocates this and other pieces of legislation that would “dismantle tax and regulatory barriers to telecommuting.”  According to the FCC, telecommuting could provide work opportunities to over 17.5 million people including retirees and disabled individuals.  For more information on the Telecommuter Tax Fairness Act, click here.