Reciprocity, Reverse Credit Agreements, & More
Reciprocity, Reverse Credit Agreements, and withholdings can sound intimidating, but we promise it’s not all as confusing as it seems! If you have any questions or doubts, we always recommend booking a Tax Home Consult!
Taxes are normally withheld to the work state, but there are some other things to remember:
NO withholding in the Work State
Full withholding in the Home State
RECIPROCITY AGREEMENT:
Withholding in the Work State
Credit given to taxes owed in the Home State
REVERSE CREDIT AGREEMENT:
Reciprocity States: IA, IL, IN, KY, MD, MI, MN, MT, ND, NJ, OH, PA, VA, WI, WV, and DC (DC does NOT tax a non-resident)
Reverse Credit States: AZ, CA, IN, OR, VA
No Income Tax States: FL, NH, NV, SD, TN, TX, WA, WY, AND DC (DC does NOT tax a non-resident)
