We’re Gonna Getcha: The Long Arm of State Tax Law Threatens Telecommuters
Your company is based in New York but you live in Arkansas? Well, says Albany, too bad. Pay us.
(From The Wall Street Journal)
In other words, someone with a New York-based job who lives and telecommutes from another state still owes full income tax to New York on that compensation. If the other state taxes that income as well and doesn’t give a credit for the New York tax—as some states don’t—the worker will likely be double taxed.