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South Dakota Senator Again Seeks Remote Worker Tax Relief

Dated Feb. 5, 2021

SUMMARY BY TAX ANALYSTS

U.S. Sen. John Thune, R-S.D., announced that he has introduced an amendment to the federal fiscal 2021 budget resolution that would allow Congress flexibility to protect workers from "unfair tax burdens" caused by working remotely or away from their home state because of COVID-19; the amendment is based on the Remote and Mobile Worker Relief Act of 2020, legislation that Sen. Thune introduced in June 2020.

Thune Introduces Amendment to Relieve Mobile and Remote Workers of Unfair Tax Burdens Caused by the COVID-19 Pandemic

February 4, 2021

Washington — U.S. Sen. John Thune (R-S.D.), a member of the Senate Finance Committee, today introduced an amendment to the budget resolution that would provide Congress a means to better protect mobile and remote workers from unfair tax burdens caused by the COVID-19 pandemic.

“Doctors and nurses who voluntarily crossed state lines to help during the pandemic — in some cases sacrificing vacation time to do so — should not be at risk of facing a much higher or unexpected tax bill as a reward for their service and sacrifice,” said Thune. “This situation is even worse for residents of states like my home state of South Dakota that don't have a state income tax against which a credit can be claimed. This amendment ensures these mobile workers are not unfairly taxed, while also providing certainty for those who are working remotely.”

Thune's amendment is based on his bipartisan legislation, the Remote and Mobile Worker Relief Act, that would ensure that medical professionals from around the country who supported areas hard hit by the COVID-19 pandemic do not face unexpected or increased state income tax bills. The bill would also address potential problems remote workers are facing during the pandemic, including the possibility of having their state income taxes become out of balance because they worked from home in a different state than their ordinary place of employment.

Thune wrote an op-ed last June in the Wall Street Journal highlighting the urgent need to prevent unexpected tax bills for remote and mobile workers, and he spoke on the Senate Eoor in December about how his legislation would spare workers from tax misery this year.

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