This Technical Information Communication (TIR) explains: (1) the scope, application and purpose of the user tax in Massachusetts; (2) the general rule that exempts property from tax to the extent that a similar tax on these assets has been paid to another state or local jurisdiction; and (3) certain specific restrictions on this exemption based on the mutual treatment of sales and user fees paid by certain states in Massachusetts.  Suppose an employee lives in Pennsylvania but works in Virginia. Pennsylvania and Virginia have a mutual agreement. The employee only has to pay government and local taxes for Pennsylvania, not Virginia. They keep taxes for the employee`s home state. 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. Workers do not owe double the taxes in non-reciprocal states. But employees might have to do a little more work, for example. B file several government tax returns. Use our chart to find out which states have mutual agreements.
And discover the form that the employee must fill to keep you from their country of origin: the states of Wisconsin that have reciprocal tax agreements are: reciprocity between states does not apply everywhere. A worker must live in a state and work in a state that has a tax reciprocity agreement. Reciprocal agreements states have something called tax between them that relieves this anger. 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. In the absence of a reciprocity agreement, employers retain the state income tax for the state in which the worker works. 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.