Taxes for Telecommuters

If you telecommute for an out of state employer you may want to take a look at this article.

The US Supreme Court let stand a New York district tax court ruling in which an employee of a New York employer was liable for New York state income tax on 100% of his earning even though 75% of the work was done in Tennessee.

It turns out the employee was telecommuting for his own convenience and not that of the employer. As a result he'll have a pretty hefty tax bill to content with.

This article offers some pretty good advice: "If you telecommute or employ telecommuters, consider reviewing the language in your employment contracts. Where appropriate, the contract should clearly state when telecommuting is required by the employer as a condition of employment."