New Jersey has had reciprocity with Pennsylvania in the past, but Gov. Chris Christie terminated the contract effective January 1, 2017. You should have filed a non-resident return to New Jersey from 2017 and paid taxes there if you work in the state. Fortunately, Christie reversed course when a hue and a cry from residents and politicians were edited. Collect Form IT 4NR, Employee`s Statement of Residency in A reciprocity State to stop Ohio income tax retention. Virginia has reciprocity with the District of Columbia, Kentucky, Maryland, Pennsylvania and West Virginia. Send the VA-4 exemption form to your employer in Virginia if you live in one of these states and work in Virginia. Please note that you may still be subject to county tax on income you earned during a non-resident. According to the Indiana Newsletter #33 “Indiana`s reciprocity agreements have no impact on the withholding requirements for Adjusted Gross Income Tax (CAGIT), County Economic Development Tax (CEDIT) or County Income Tax (COIT). Kentucky is a member state of the academic common market that is a limited regional reciprocity agreement between some southern states. Advantageous tuition fees in neighbouring states are sometimes possible through reciprocity, although many restrictions apply. Employees who work in D.C. but do not live there do not need to have an income tax D.C.

Why? D.C. has a tax reciprocity agreement with each state. Indiana, Wisconsin, Michigan, Ohio, Virginia, West Virginia and Illinois all have mutual tax agreements with Kentucky. The agreements mentioned in 103 KAR 17:140 exempt persons residing in those states from paying taxes on Kentucky income. Do you have an employee who lives in one state but works in another? If it is the presence, you usually keep government and local taxes for the state of work. The worker still owes taxes to his country of origin, which could cause him trouble. Or can he? Mutual agreements. The states of Wisconsin with reciprocal tax agreements are: employees must submit the MI-W4 form, the certificate of withholding tax from Michigan staff, on tax reciprocity. In the absence of a reciprocity agreement, employers withhold the state income tax for the state in which the worker works. You do not pay taxes twice on the same money, even if you do not live or work in any of the states with reciprocal agreements.