Washington, D.C. – Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and John Thune (R-S.D.) introduced the Mobile Workforce State Income Tax Simplification Act, bipartisan legislation that would simplify and standardize state income tax collection for employees who travel outside of their home state for temporary work.
While some states require state income tax filing for as little as one day of work in the state, this legislation would establish a common-sense 30-day threshold to help ensure that an equitable tax is paid to the state and local jurisdiction where the work is being performed, while alleviating burdensome tax requirements for employees and employers. Both Nevada and South Dakota have no income tax which limits the ability for residents to offset taxes paid in other states. This legislation would ensure that Nevada workers who temporarily travel outside of the state for work aren’t unfairly punished.
“Mobile workers who temporarily work outside of their home state should not find a surprise tax bill come April,” said Senator Cortez Masto. “I’m proud to introduce this common-sense bill alongside Senator Thune to cut red tape and protect workers across the United States.”
“It is complicated and unfair for an individual who lives in a state like South Dakota, with no state income tax, to have to file income taxes in multiple states for simply temporarily working in those states – in some cases, for as little as 24 hours – and not be able to recover any income tax payments he or she has to make,” said Senator Thune. “The current framework is overly burdensome, and our legislation would provide much-needed relief by creating a common-sense, across-the-board standard for mobile employees who spend a short period of time during the year working across state lines.”
Senator Cortez Masto has consistently supported efforts to cut taxes and lower costs for hardworking Nevadans. Earlier this week, the Senator introduced the Tax Cut for Workers Act to give millions of working Americans a much-needed tax break, as well as American Families Act to permanently expand the Child Tax Credit. She helped pass critical expansions to the Child Tax Credit in the American Rescue plan, and has been fighting to permanently increase this vital relief for working families. Cortez Masto also helped introduce the No Tax on Tips Act to exempt tipped wages from federal income tax. Additionally, Senator Cortez Masto supports raising the federal minimum wage and eliminating the minimum wage gap for tipped workers nationally.
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