A reciprocal agreement allows residents of one state to work in a neighboring state while paying taxes to only the resident state. This allows taxpayers to file one tax return (resident state) if an exemption from the other state's withholding taxes has been claimed.
If you do not claim exempt in the nonresident state, you may need to file a return in the nonresident state to claim a refund of taxes that were withheld.
The following states have reciprocal agreements where you can file an exemption form:
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If you live in: |
and you work in: |
file form: |
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Anywhere other than District of Columbia |
District of Columbia |
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Iowa, Kentucky, Michigan or Wisconsin |
Illinois |
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Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin |
Indiana |
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Illinois |
Iowa |
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Illinois, Indiana, Michigan, Ohio, Virginia or West Virginia |
Kentucky |
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District of Columbia, Pennsylvania, Virginia or West Virginia |
Maryland |
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Illinois, Indiana, Kentucky, Minnesota, Ohio or Wisconsin |
Michigan |
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Michigan or North Dakota |
Minnesota |
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North Dakota |
Montana |
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Pennsylvania |
New Jersey |
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Minnesota or Montana |
North Dakota |
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Indiana, Kentucky, Michigan, Pennsylvania or West Virginia |
Ohio |
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Indiana, Maryland, New Jersey, Ohio, Virginia, or West Virginia |
Pennsylvania |
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District of Columbia, Kentucky, Maryland, Pennsylvania, or West Virginia |
Virginia |
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Kentucky, Maryland, Ohio, Pennsylvania or Virginia |
West Virginia |
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Illinois, Indiana, Kentucky or Michigan |
Wisconsin |