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Multi-State Worker Tax Fairness Act of 2021

12/31/2022, 4:58 AM

Summary of Bill HR 4267

Bill 117 HR 4267, also known as the Multi-State Worker Tax Fairness Act of 2021, aims to address the issue of double taxation for individuals who work in multiple states. Currently, some states require individuals who work remotely for companies based in another state to pay income taxes in both states, leading to a financial burden for these workers.

The bill proposes that individuals who work remotely for a company based in another state for more than 30 days in a calendar year will only be required to pay income taxes in their state of residence. This would prevent double taxation and provide relief for multi-state workers who are currently facing this issue.

The bill has received bipartisan support in Congress, with lawmakers recognizing the need to address this issue and provide fairness for individuals who work across state lines. Supporters argue that the bill will help to simplify tax compliance for multi-state workers and ensure that they are not unfairly burdened with additional taxes. Overall, the Multi-State Worker Tax Fairness Act of 2021 aims to provide relief for individuals who work remotely for companies based in other states and prevent double taxation. The bill has the potential to make tax compliance easier for multi-state workers and ensure that they are not unfairly penalized for their work arrangements.

Congressional Summary of HR 4267

Multi-State Worker Tax Fairness Act of 2021

This bill limits the authority of a state to impose its income tax on the compensation of a nonresident individual to the period in which the nonresident individual is physically present in the state.

Current Status of Bill HR 4267

Bill HR 4267 is currently in the status of Bill Introduced since June 30, 2021. Bill HR 4267 was introduced during Congress 117 and was introduced to the House on June 30, 2021.  Bill HR 4267's most recent activity was Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law. as of November 1, 2022

Bipartisan Support of Bill HR 4267

Total Number of Sponsors
1
Democrat Sponsors
1
Republican Sponsors
0
Unaffiliated Sponsors
0
Total Number of Cosponsors
6
Democrat Cosponsors
6
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 4267

Primary Policy Focus

Taxation

Potential Impact Areas

- Commuting
- State and local taxation

Alternate Title(s) of Bill HR 4267

To amend title 4 of the United States Code to limit the extent to which States may tax the compensation earned by nonresident telecommuters and other multi-State workers.
Multi-State Worker Tax Fairness Act of 2021
Multi-State Worker Tax Fairness Act of 2021

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