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States Battle Each Other Over Billions in Work-From-Home Taxes

  • Fight erupts over who gets revenues when commuters stay home
  • Several states join request for U.S. Supreme Court to weigh in
Working From Home And Learning Remotely As Illinois Positivity Rate Drops
Photographer: Daniel Acker/Bloomberg
Updated on

The worst fiscal crisis in decades is pitting U.S. states against one another over billions in taxes from residents working from home.

New Jersey and Connecticut on Tuesday joined a legal battle to stop neighboring states from taxing residents who -- due to the pandemic -- have stopped commuting over state lines and are now working remotely. The case, filed by New Hampshire against Massachusetts in October, has drawn more than a dozen friend-of-the-court briefs by states urging the U.S. Supreme Court to take up the challenge.