HARTFORD, Conn. (AP) — The Connecticut House of Representatives passed legislation Wednesday that proponents said will prevent approximately 110,000 Connecticut residents who commute to Massachusetts and New York but worked from home in 2020 because of COVID-19 from being double-taxed.
Typically, when someone works in those states but lives in Connecticut, they owe income tax to the state where they work. But many commuters who've been working from home during the pandemic now face having to pay taxes in Connecticut as well.
“Because they’re working here, they would be subject to income tax here, as well as being subject to the income tax in New York. And what we want to do is try to protect those individuals from being taxed more,” said Rep. Jason Rojas, D-East Hartford, the majority leader of the House of Representatives.
The bill, which was approved on a 125-to-24 vote, would provide those workers with a credit for income taxes owed to Connecticut during just the 2020 tax year. The legislation is not expected to create a revenue loss to Connecticut because the state never counted on collecting that money in the first place, said Rep. Sean Scanlon, D-Guilford, co-chair of the Finance Revenue and Bonding Committee.
The bill awaits final legislative action in the Senate.