Just as it looked like people were finally getting to be okay with telecommuting, the Supreme Court makes the whole process more expensive. Earlier this year we wrote about a programmer who was telecommuting from Tennessee to work for a company based in New York. He paid New York taxes on the portion of his income based on the time that he actually spent in New York, but the state decided that he needed to pay New York state taxes on his entire salary, saying that New York gave him the opportunity for the job, and basically, he owed them for it. While he lucked out because Tennessee has no income tax to add on top of that, telecommuters in other states wouldn't be so lucky -- and might have to pay state taxes in multiple states on their entire salaries. The original telecommuter appealed all the way up to the Supreme Court, but the Court has decided not to hear the case -- meaning states are now free to start taxing out-of-state telecommuters on their entire salaries.
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