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Albany, N.Y.—New York’s high court last week heard a case of critical importance to the future of telecommuting. Although Thomas L. Huckaby of Tennessee spends little time in New York, does not live in New York and does virtually no work in New York, New York claims it is entitled to tax 100% of his income because his employer is based in the New York City borough of Queens. An intermediate court, on April 29, held unanimously that the state is right. 6 A.D.3d 988. Matter of Huckaby v. New York State Division of Tax Appeals, now in the state Court of Appeals, is being watched closely by states attempting to address the modern reality of telecommuting with tax codes written when the idea of telecommuting was futuristic. The questions is: To whom does a telecommuter pay state income tax? Most states resolve the issue by simply apportioning income. In New York, if the employee works out of state for convenience rather than employer necessity, the state clams it is entitled to tax 100% of the income earned. Since some states, such as Connecticut, base their income tax on where the taxpayer lives rather than where the income is earned, that means some workers are subjected to double taxation on the same income.

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