Connecticut
New Jersey is pushing local telecommuters who work for New York companies to appeal their Empire State tax bills
Telecommuting, a pandemic-era novelty that has become a permanent alternative for many people, has some Connecticut and New Jersey employees of New York-based companies questioning why they still have to pay personal income tax to the Empire State.
Their home states are wondering as well.
Fed up with losing out on hundreds of millions of dollars in tax revenue each year, New Jersey is now offering a state tax credit to residents who work from home and successfully appeal their New York tax assessment. Connecticut is considering a similar measure.
The Garden State’s bounty — a rebate worth roughly half a person’s refund of income taxes they paid to New York for the 2020-2023 period — has been claimed so far by one winning litigant since the state made the offer in July, according to the state’s Division of Taxation. That taxpayer received a $7,797.02 refund for their efforts. Officials hope that person’s windfall will encourage others to follow suit.
Another New Jersey resident who is taking up the state’s offer is Open Weaver Banks, a tax attorney who prefers working from home to braving an “awful” commute into the Big Apple. She’s also filed one of a growing number of similar challenges.
“The process of doing the refund and the appeal isn’t all that intimidating to me,” said Banks, a tax partner at Hodgson Russ LLP. “I’m on New Jersey’s team here. I would like to see more residents doing this. I think they have a really fair point.”
New York requires out-of-state commuters who work for New York-based companies to pay New York income taxes, even if they’ve stopped physically going in to the office most days a week, unless they can satisfy very strict requirements for what constitutes a bona fide home office.
A home office near a specialized track to test new cars, for example, might qualify if it couldn’t be replicated in New York. But a worker with specialized scientific equipment set up in their home that could be duplicated over the border would still have to pay, according to a memorandum from the New York State Department of Taxation.
When the nature of work was upended in 2020, New York should have “softened” these requirements, Banks said. “And they didn’t. They are just standing by and fighting the claims.”
Both neighboring states have implemented “retaliatory” tax rules that affect New Yorkers who work remotely for Connecticut or New Jersey-based companies, but these workforces are far smaller and their overall tax payments don’t make up the difference.
Out-of-state taxpayers paid New York nearly $8.8 billion in 2021 in taxes, roughly 15% of the state’s total income tax revenues, according to the Citizens Budget Commission in New York. Of that, $4.3 billion came from New Jersey taxpayers and $1.5 billion from Connecticut taxpayers.
It’s unclear how much of that was earned at home. But out-of-state employees of New York-based companies who work remotely are increasingly appealing their tax bills, Amanda Hiller, the acting commissioner and general counsel for the New York Department of Taxation and Finance, told state legislators recently.
Hiller acknowledged that New York’s decades-old policy, known as a “convenience of the employer rule,” has created a financial burden for New Jersey and Connecticut, which provide tax credits to their residents for the income taxes they’ve paid New York so they are not double-taxed.
New Jersey’s Division of Taxation said the state’s long-term goal is to have New York’s rule overturned entirely, something that will likely require a taxpayer’s legal challenge to succeed before the U.S. Supreme Court. That could be a tall order: New Hampshire tried to sue Massachusetts for temporarily collecting income tax from roughly 80,000 of its residents who worked from home during the pandemic, and the Supreme Court rejected the complaint without comment.
Officials in New Jersey estimate it could reap as much as $1.2 billion annually if residents working from home for New York companies are taxed at home. Connecticut could recoup about $200 million, its officials say.
Connecticut Gov. Ned Lamont has proposed an initiative similar to New Jersey’s that needs final legislative approval. It’s unclear, however, whether it can pass before the session ends May 8.
“We think it’s an unconstitutional overreach by the state of New York,” Jeffrey Beckham, secretary of Connecticut’s state budget office, said recently. “We think our residents should paying tax to us and they’d be paying at a lower rate.”
Indeed, the top marginal state income tax rate, as of Jan. 1, for individuals in New York is 10.90%. Connecticut’s top rate is 6.99% and New Jersey’s is 10.75%, according to the Tax Foundation.
“An awful lot of people are hurt by these laws,” said Edward Zelinsky, a Connecticut resident, tax law expert and professor at Yeshiva University’s Cardozo School of Law in New York City. “While New York and other states like to pretend that these are wealthy people, the people who are most hurt by this rule are often people of modest income, middle income, people who can’t afford lawyers.”
Zelinksy has been trying, so far without success, to challenge New York’s tax rule for about 20 years, including a pending case over the income he earned working from home while his school was closed due to COVID-19 restrictions.
A small number of states, including Arkansas, Delaware, Nebraska and Pennsylvania, have tax rules similar to New York’s. New Jersey and Pennsylvania have a reciprocal income tax agreement.
Andrew Sidamon-Eristoff, who is in the unique position of being the former New Jersey state treasurer and a former New York commissioner of taxation and finance, believes eventually the right litigant will “get it before the right court to challenge it.”
But former New Jersey state Sen. Steven Oroho, an accountant who commuted for nearly two decades into New York City and who pushed as a legislator to address the inequity, said he’s skeptical of New Jersey’s commitment to the effort, which puts the financial onus of a potentially lengthy and expensive legal challenge on the individual taxpayer.
“New York is very, very aggressive and unfortunately, in my view,” said Oroho, “New Jersey has been extremely passive.”
Connecticut
Study: Late-Night Gamers in Connecticut Are Dragging Down Productivity
According to a study published by Win.gg, all those late-night gaming sessions aren’t just wrecking your sleep—they’re wrecking Connecticut’s bottom line. Yeah, apparently your midnight raid or Fortnite grind comes with a side of lost productivity, and it adds up fast.
Win.gg surveyed 2,000 working gamers across the U.S., then crunched the numbers with data from the U.S. Census and the Bureau of Labor Statistics. The results? Roughly 47% of employed gamers in Connecticut admit they’re dragging the next day after a late-night session. On average, that translates to about 2.6 hours of work that… well, never really happens. If you put a dollar figure on it, that’s about $104 lost per worker in a single day. Multiply that by the state, and we’re looking at a staggering $74 million in lost productivity. Yup, you read that right—$74 million just because people stayed up too late chasing loot or finishing that last level.
Read More: Three Arrested for Burglary in New Fairfield
It’s not just your career that’s taking a hit, either. Gamers in the state report cutting their sleep by an average of 1.8 hours to fit in those extra hours of gaming. And we all know what happens when you skimp on sleep: coffee consumption goes up, focus goes down, and suddenly responding to emails feels like decoding hieroglyphics.
So, what does this mean for Connecticut? Employers are essentially paying for productivity that doesn’t happen, and the state as a whole is bleeding money. But let’s be real—nobody’s about to stop gaming. If anything, this is a reminder that maybe those late-night raids are best saved for the weekend, or at least capped so the Monday grind doesn’t feel like a marathon through molasses.
If you want to dive into all the numbers and methodology, Win.gg has the full breakdown here. But the takeaway is clear: your gaming habit might be costing more than you think—both in sleep and in dollars.
Exploring Beyond the Rusty Gates of Danbury’s Oldest Cemetery on Wooster Street
I live just down the block from the Wooster Street Cemetery and whenever I pass, I am always struck at how odd it is. You have this quiet, beautiful place that is dedicated to the people who were buried there, in the middle of a busy city and almost no one ever goes there. I decided to go take a deeper look around and see what was beyond the iron gates and stone walls.
Gallery Credit: Lou Milano
7 of the Most Beautiful Towns in the State of Connecticut
Connecticut is overflowing with both manmade and natural beauty. In some places, the two intersect to create a magical, almost fictional feel. Here are 7 Connecticut Towns that look like they came straight from a storybook.
Gallery Credit: Lou Milano
Top 10 Chain Restaurants with the Most Locations in Connecticut
The other day the boys and I were talking about KFC’s new “gravy flights,” and it got me wondering—do you know which fast-food chain has the most locations in Connecticut? None of us did, so I looked it up.
Gallery Credit: Lou Milano
Connecticut
Pension fund assets for retired CT state employees and teachers up 14%
State Treasurer Erick Russell achieved a 14% increase last year investing Connecticut’s pension fund assets, gaining roughly $8.3 billion for retirement programs for state employees, teachers and other municipal workers.
The state, which oversees nearly $69 billion in pension assets, aims for an average annual return on pension investments of 6.9%.
Expectations for bigger gains grew throughout the past year as key stock market indices surged. The Dow Jones Industrial Average, an index of 30 prominent companies listed on stock exchanges, grew by more than 13% in 2025. And the S&P 500, which follows 500 traded companies, topped 16%.
Among peer states and other entities that manage public pension funds holding more than $10 billion in assets, Connecticut’s 2025 performance ranks in the top 17%, Russell said.
But the treasurer, who also announced this week he will seek a second term, said the latest big earnings stem from more than the big gains Wall Street enjoyed in 2025.
“Markets certainly have been strong, but a lot of this is about our overall asset allocation,” said Russell, who updated the Investment Advisory Council Tuesday on the state’s portfolio. “The progress we’ve been making … is a good sign that we’re set up for future success.”
Russell also reported investment gains of 10.3% for the 2024 calendar year and 12.8% for 2023.
State officials particularly have focused on improving investment returns since a May 2023 report from Yale University researchers found Connecticut’s results badly lagged the nation’s over the prior decade.
That only compounded an even larger pension problem that state officials began to address in the early 2010s. According to the Center for Retirement Research at Boston College, Connecticut governors and legislatures failed to save adequate for pension benefits for more than seven decades prior to 2011. This deprived the state treasurer of huge assets that otherwise could have been invested to generate billions of dollars in revenue over those seven decades.
The treasurer’s office under Russell has put more funds into private and domestic markets and curbed reliance on investment managers who receive large fees for their work.
Gov. Ned Lamont and the General Assembly also have greatly assisted efforts to bolster the fiscal health of pension programs in recent years. Since 2020, they have used $10 billion from budget surpluses to make supplemental payments into pensions for state employees and municipal teachers. That’s in addition to annual required payments that currently approach $3.3 billion in the General Fund.
“These returns highlight the impressive work of Treasurer Russell and his team in increasing investment returns,” Lamont’s budget spokesman, Chris Collibee, said Tuesday. “Gov. Lamont’s focus has been on building a sustainable Connecticut for the future. Every dollar in additional investment revenue is funds the state can use to cut taxes and provide more resources for essential programs like education, child care, housing, and social services safety nets.”
Russell, a New Haven Democrat, said he has tried to make the office both “disciplined and forward-looking.”
“Over the last several years, we haven’t just changed how the office works, we’ve changed who it works for. We’re ushering in a new era of fiscal responsibility, making significant payments on long-term debt that has allowed us to invest in the residents of Connecticut and begin to lift up communities across our state.”
Russell also brokered a key compromise in 2023 between Lamont and the legislature that salvaged the Baby Bonds program, an initiative that invests long-term funds in Connecticut’s poorest children when they’re born to help finance educational and business opportunities later in life.
Keith M. Phaneuf is a reporter for The Connecticut Mirror (https://ctmirror.org). Copyright 2026 © The Connecticut Mirror.
Connecticut
Body recovered after Bloomfield house fire and explosion
A body was recovered after a house explosion resulting in a house fire in the area of Banbury Lane on Monday night.
Fire Marshal Roger Nelson says they recovered a body around 1:15 on Tuesday morning. The identity of the body found will not be released at this time.
When officers arrived around 6:11 p.m. they encountered the house fully in flames, police said.
According to police, the fire department was able to extinguish the fire, but the house sustained devastating damage.
There are no criminal aspects related to this incident at this time.
The incident was contained to the one house.
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