Tax
relief for Connecticut residents working from home for New York and
Massachusetts companies has received its final approval in the state
Legislature Monday.
It prevents Connecticut residents from being “double taxed” by giving them a special tax credit for income taxes they paid in New York or Massachusetts, even while working from home. The move affects about 80,000 workers.
The
bill also restructures payments in lieu of taxes to cities.
Critics
call it a commuter tax levied by New York and Massachusetts. There is currently
a federal lawsuit over whether those states have the right to collect income
tax from state residents if they are currently physically working in
Connecticut.
Connecticut
lawmakers says since the lawsuit is still unresolved, they didn't want residents
to get taxed twice.