States Fight Over Workers’ Taxes

Wednesday April 6, 2022 – It’s tax time and the battle is on! COVID created a whole class of employees who work in one state (where they live) for a company that has a head quarters in another state. The employee never goes to the company’s state – but the state, where they never go, wants to collect taxes from them.

This is a VERY common question. I answered that question twice today. The answer is much more complicated than you would expect. In fact, New Hampshire brought a law suit against Massachusetts to stop Massachusetts from taxing New Hampshire residents. Last summer, the United States Supreme Court refused the suit to move forward.

So, where does that leave the employee? Well, that depends on where you live – and where your employer is located.

Attorney Steven A. Leahy reviews the court battle and the implications of this problem to workers.

https://www.dgccpa.com/perspectives/new-hampshire-v-massachusetts-taxation-of-remote-workers-case-will-not-be-heard-1425

Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649

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