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. In this case, you will only have to file a return in your resident state and and have taxes withheld in that 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|
|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 webpage or document at the time it is accessed.