Telecommuter Tax Fairness Act of 2004

The Telecommuter Tax Fairness Act of 2004 (H.R. 5067) aims to prevent states from taxing the income of nonresident employees for days they are not physically present in that state. Under this legislation, a state could only collect income tax from a nonresident for work performed while the individual is physically within the state’s borders. This would specifically prohibit states from applying "convenience of the employer" rules, which currently allow some states to tax the full salaries of remote workers living elsewhere if their home office is located in that state.