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This bill amends federal law to restrict states' ability to tax income earned by nonresident workers, including telecommuters. Under the bill, a state may only tax a nonresident individual's compensation for periods when that person is physically present in the state; states cannot tax compensation earned while the worker is physically present in another state. The bill also prohibits states from deeming a worker present in their state based on remote work arrangements or 'convenience of the employer' tests, and requires states to follow the employer's classification of work time and compensation periods.
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