11 Apr Reciprocal Agreements Between States And Provinces
You do not have to file a tax return in D.C if you work there and if you live in another state. Send the D-4A exemption form, the “Certificate of Non-Residence in the District of Columbia,” to your employer. Unfortunately, it only works backwards with two states: Maryland and Virginia. In none of these countries do you need to file a non-resident return if you live in D.C. but you work in one of these countries. 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. You just have to spend a little more time preparing several state returns and you have to wait for a refund for taxes that are unnecessarily withheld from your paychecks. Quebec does not have a reciprocity agreement with the U.S. government.
However, it has reciprocity agreements with the following states: Virginia has reciprocity with the District of Columbia, Kentucky, Maryland, Pennsylvania and West Virginia. Submit the 4-year form to your employer in Virginia if you live in one of these states and work in Virginia. Michigan has mutual agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin. Submit the MI-W4 leave form to your employer if you work in Michigan and live in one of these states. The U.S. Supreme Court has against double taxation in Maryland treasury controllers v. Wynne in 2015, which stipulates that two or more states are no longer allowed to tax the same income. But filing multiple tax returns might be necessary to be absolutely certain that you will not be taxed twice. C. The Commission may enter into a mutual agreement with an appropriate official in another state or province of Canada if such an arrangement is necessary for a Virginia resident to be admitted as a non-resident in that state or province in a similar manner. All Canadian provinces and territories have reciprocal agreements with each other and with other countries. These agreements allow you to establish, vary or apply an assistance order in a province, territory or country.
The map below shows 17 states (including the District of Columbia) where non-resident workers living in different states do not have to pay taxes. Move the cursor over each orange state to see their reciprocity agreements with other states and find out what form non-resident workers must submit to their employers to be exempt from deduction in that state. Kentucky has reciprocity with seven states. You can submit the 42A809 exemption form to your employer if you work here but reside in Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia or Wisconsin.