Thune pushes for remote worker tax relief to be included in COVID-19 relief package

Sen. John Thune (R-S.D.) on Tuesday pushed for tax relief to remote and mobile workers to be included in a coronavirus relief package this year.

“One thing that I would argue needs to be on that is a provision that prevents states from taxing health care workers like doctors and nurses who go across state lines [to] provide their services,” Thune, who holds the second highest position in Senate GOP leadership, said at a news conference. “That is an act of good will. They shouldn’t be faced a surprise tax bill.”

“I think there ought to be a provision in this legislation that makes it clear that people like that, or people who are frankly working remotely and have tax consequences as a result of that, don’t hit get with a big fat tax bill by some state,” he added.

Lawmakers and tax professionals have been concerned that workers could be confused when they file their state tax returns next year because of the pandemic. They’re worried that people who worked remotely in a different state from their office and health care workers who traveled to another state to help treat coronavirus patients could end up with unexpectedly high tax bill because they will need to file returns in multiple states.

Thune and Sen. Sherrod Brown (D-Ohio) introduced a bill earlier this year under which workers who traveled to another state for employment because of the pandemic could not be subject to that state’s taxes unless they worked there for more than 90 days. Additionally, employers would be able to treat their workers’ income as earned at its normal work location in 2020.

Thune said that he thinks his bill can get across the finish line if Senate Minority Leader Charles Schumer (D-N.Y.) allows it to be included in a coronavirus relief package. New York is among the states that most aggressively taxes workers who aren’t residents.