A new bill, HR 1864: the Mobile Workforce State Income Tax Simplification Act of 2011, has been introduced into the House of Representatives. An identical copy to a bill introduced in 2009 that never came up for vote, HR 1864 would create uniform rules for handling state income tax of non-resident workers, replacing the current landscape where rules vary state to state.
The new rules would be fairly simple. If you work in a state for more than 30 days in a year, your wages can be taxed by the state. Currently the thresholds for taxation vary by state, ranging from a single day to 60. HR 1864 provides exceptions for professional athletes and entertainers and for certain public figures. If passed, this bill would go into effect January 1, 2013.
For more on this or other tax concerns, contact the Illinois tax attorneys at Horowitz & Weinstein.