Indiana has reciprocity with Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin. Submit the WH-47 exemption form to your employer in Indiana. Iowa has reciprocity with only one state — Illinois. Your employer doesn`t need to withhold Iowa income taxes on your wages if you work in Iowa and you live in Illinois. The 44-016 exception form is submitted to your employer. The reciprocity rule concerns filing two or more tax returns for workers – a tax return resident in the state where they live and non-resident tax returns in all other countries where they could work, so that they can recover all taxes that have been wrongly withheld. In practice, federal law prohibits two states from taxing the same income. Multi-national and non-resident returns have rules that can frighten the average taxpayer. Most of them feel that living and working in different states, and thus living in several states, creates a difficult situation.

But this could not be further from the truth. Sometimes multi-state returns are commonplace. For example, employees who work in kansas City-based companies in MO often live in the state of Kansas and commute daily to work. This situation is so common that the two states have agreements between their revenue departments. The same can be found in the Chicago area in the Midwest (IL, IN, WI). Many are confused, but the basic mechanics are very simple. I will give an example to illustrate: 6/10/2019: Removes the linked form which is no longer valid and which has been removed from the directive; Fixed link to Kansas status in the „Other Related Persons“ section 10/11/2018: Updated Contact Zone and addition of the Bachelor of Science to the program section. 07/11/2016: Updated to remove sexist pronouns. 16.10.2014: Cleaning up the formatting of the directive (bold characters. B, distance). An agreement initiated in 1964 by the Kansas Board of Regents, the Missouri Coordinating Board for Higher Education and the Curators of the University of Missouri, revised in 2000 and 2004. Arizona has reciprocity with a neighbouring state — California — Indiana, Oregon and Virginia.

WEC file form, the withholding certificate, with your employer for an exemption from the deduction. Reciprocal tax arrangements allow residents of one state to work in other states without the state`s taxes being withheld from their wages. They would not need to file non-resident state tax returns there, as long as they follow all the rules. You can simply make a necessary document available to your employer if you work in a state in your home country. New Jersey has had reciprocity with Pennsylvania in the past, but Gov. Chris Christie terminated the contract effective January 1, 2017.