New Jersey is motivating telecommuters to appeal their New York tax bills. Connecticut may be next

By SUSAN HAIGH
Associated Press

HARTFORD, Conn. (AP) — New Jersey is incentivizing taxpayers who work from home for New York based employers to sue New York in court for taxing their wages. Connecticut is now considering it as well. There’s hundreds of millions of dollars on the line for both states. New Jersey Gov. Phil Murphy last year signed legislation that rewards New Jersey residents with a tax break who win their tax appeal. Now Gov. Ned Lamont of Connecticut, a fellow Democrat, wants to offer a similar bounty. Out-of-state taxpayers paid nearly $8.8 billion in 2021 in taxes, roughly 15% of New York’s total income tax revenues.