The pandemic ushered in many changes to American life, to the degree that the tax changes it brought were not initially at the forefront of taxpayers’ minds. But with remote work seemingly here to stay, taxpayers are now having to grapple with the fact that while remote work offers new opportunities and detaches workers from having to live in areas just because of job opportunities, it also means changes to tax obligations.
Unfortunately, they’re finding that not all states’ tax codes avoid creating unnecessary complications. Illinois is well-positioned to attract remote workers in the new economy, but with small policy changes, Illinois could be the No. 1 state in the country for remote workers.
Remote workers already find Illinois hospitable for many reasons — first and foremost, the state’s gold-standard withholding threshold of greater than 30 days. Withholding thresholds represent the number of days a taxpayer can work or amount of income a taxpayer can earn in-state before an employer is required to withhold income taxes on their behalf.
