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Generally, if you live in one state but work in another, you must file an income tax return in both states. This is because withholding tax is deducted from your paycheck in the state where you work.

In some cases, you may benefit from what's called a "reciprocal agreement" between states. This kind of agreement allows your employer to withhold taxes from the state where you live instead of the state where you work. Taxes still need to be withheld, so you can't avoid that part. But, you will only have to file a return in your resident state.

States with current reciprocal agreements are listed below. This does not apply to you unless you file the required tax forms. Talk to your employer to file the necessary paperwork.

State States in Agreement Certificate/Form to Use
Arizona California, Indiana, Oregon, Virginia Form WEC Withholding Exemption Certificate
District of Columbia All nonresidents who work in DC can claim exemption from withholding for the DC income tax. Form D-4A Certificate of Nonresidence in the District of Columbia
Illinois Iowa, Kentucky, Michigan, Wisconsin Form IL-W-5-NR Employee's Statement of Nonresidence in Illinois
Indiana Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin Form WH-47 Certificate of Residence
Iowa Illinois Form 44-016 Employee's Statement of Nonresidence in Iowa
Kentucky Illinois, Indiana, Michigan, Ohio, West Virginia, Wisconsin, Virginia Form 42A809 Certificate of Nonresidence
Maryland District of Columbia, Pennsylvania, Virginia, West Virginia Form MW 507 Employee's Maryland Withholding Exemption Certificate
Michigan Wisconsin, Indiana, Kentucky, Illinois, Ohio, Minnesota Form MI-W4 Employee's Michigan Withholding Exemption Certificate
Minnesota Michigan, North Dakota Form MWR Reciprocity Exemption/Affidavit of Residency for Tax Year 2020
Montana North Dakota Form NR-2 Employee Certificate of North Dakota Residence
New Jersey Pennsylvania Form NJ-165 Employee's Certificate of Nonresidence in New Jersey
North Dakota Minnesota, Montana Form NDW-R Reciprocity exemption from withholding for qualifying Minnesota and Montana residents working in North Dakota
Ohio Indiana, Kentucky, Michigan, Pennsylvania, West Virginia Form IT-4NR Employee's Statement of Residency in a Reciprocity State
Pennsylvania Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia Form REV-419 Employee's Nonwithholding Application Certificate
Virginia Kentucky, Maryland, District of Columbia, Pennsylvania, West Virginia Form VA-4 Personal Exemption Worksheet
West Virginia Kentucky, Maryland, Ohio, Pennsylvania, Virginia Form WV/IT-104 Employee's Withholding Exemption Certificate
Wisconsin Illinois, Indiana, Kentucky, Michigan Form W-220 Nonresident Employee's Withholding Reciprocity Declaration

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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