1. Summary

2. States with Reciprocal Tax Agreements 

3. Key Takeaways 

4. The History of Double Taxation 

5. Conclusion


To put it simply, if the state where you work has a Reciprocal duty agreement with the state where you live, also your work state shouldn’t withhold levies from your stipend. This makes filing state levies simpler because you won’t be needed to file a return for both countries. Duty reciprocity only applies to state and original levies. You’ll still be needed to pay civil income levies no matter where you live and work.  still, you should anticipate filing a return for both countries train as an occupant where you live and as a non-resident where you work, If there’s no Reciprocal agreement between your work state and your home state. Civil law doesn’t allow two countries to stretch the same income. But, filing a state return for both is still important, because you’ll probably be owed a refund for levies withheld from your work state. 

States with Reciprocal Tax Agreements 

Reciprocal duty agreements allow residents of one state to work in another state without having income levies withheld in the state they work in. The income they earn in their work state is tested grounded on the duty rules of the state they live in. As of 2022, 16 countries — Arizona, Illinois, Indiana, Iowa, Kentucky, Maryland, Michigan, Minnesota, Montana, New Jersey, North Dakota, Ohio, Pennsylvania, Virginia, West Virginia, and Wisconsin and the District of Columbia have Reciprocal duty agreements in place. Still, you would not have to file a non-resident state duty return for your state of employment, assuming it follows all the rules If the state of your hearthstone has a Reciprocal agreement with the state you work in. You can simply give your employer the needed documents.  Reciprocity can greatly simplify duty time for people who live in one state but work in another, a commodity that is fairly common among those who live near state lines. multitudinous countries have Reciprocal agreements with others. 

Key Takeaways 

1. Reciprocal duty agreements allow residents of one state working in another state to pay levies on their earned income grounded on the rules of the state of their hearthstone.

2. Reciprocal duty agreements also mean that residents of one state working in another may not need to file separate duty returns if they give the correct documents to their employers. 

3. All needed forms are available on state websites. Your mortal coffers department probably has the applicable form on hand as well. 

4. Levies for your work state will be withheld from your pay if you fail to submit the form, but you will not lose the money. Your home state should give that duty credit equal to the amount of the duty you paid to your work state, indeed if it does not have reciprocity with that state. 

5. Your other option is to file a non-resident return in the state where you work to claim a refund for the levies that were withheld there. 

The History of Double Taxation 

The reciprocity rule deals with workers having to file two or further state duty return a resident return to the state where they live, and non-resident returns to any other countries where they might work so they can get back any levies that were inaptly withheld. As a practical matter, civil law prohibits two countries from trying the same income.  The U.S. Supreme Court ruled against double taxation in a case called Comptroller of the Treasury of Maryland. Wynne in 2015, stated that two or further countries are no longer permitted to duty the same earnings. But filing multiple returns might be necessary to be sure that you are not being tested doubly.  For illustration, New York cannot stretch you if you live in Connecticut but work in New York, and you pay levies on that earned income to Connecticut. Connecticut is supposed to offer you a duty credit for any levies you paid to the other state, or you can file a New York state duty return to claim a refund of levies withheld there. 


still, you’ll have levies withheld in your work state, if your state does not have a Reciprocal duty agreement with the state where you work. At duty time, you’ll have to file levies in both countries to sort out how important you owe or how important you will be reimbursed from either state. When it’s all settled, you still will not be tested doubly on your income.  In countries that have Reciprocal agreements, you can file impunity with your employer so that you will not have levies withheld in your work state. Make sure your employer is withholding levies for your resident state, however.