Thousands of commuters face income tax while remote working due to the Coronavirus outbreak.
The Massachusetts Department of Revenue has faced recent criticism for collecting income tax on out-of-state workers currently working from home due to the COVID-19 pandemic. Many New Hampshire residents travel to Massachusetts for work, paying income tax to do so.
Governor Baker’s administration has clarified it will continue to tax out-of-state residents who normally go to work in Massachusetts each morning, even if they continue to work from home due to restrictions, likely until the end of 2020.
Before the pandemic, New Hampshire residents who worked for Massachusetts-based companies were able to adjust their income tax liability to reflect any days they spent working from home. However, the current approach defines time spent working for the employer as taxable if people are home specifically because of the pandemic.
Understandably, this policy is not being welcomed by New Hampshire politicians, who feel constituents should benefit from the fact their state does not impose a broad-based income tax as they are no longer commuting. It has been reported that the taxation rules issued by Massachusetts are being reviewed to ensure New Hampshire residents are not improperly taxed.
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