Nonresident Income Tax Freedom Act of 2005

The Nonresident Income Tax Freedom Act of 2005 (S. 479) was a legislative proposal that would have prohibited any state from taxing the income of individuals who do not live in that state. Under this bill, if a person lived in one state but traveled to or worked temporarily in another, the state where the work was performed would be barred from collecting state income tax on those earnings. This measure was designed to simplify tax obligations for interstate commuters and mobile workers by ensuring they would only owe state income taxes to their home state.