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For states covered by a reciprocity agreement, how do taxpayers who live in one state and work in another avoid double taxation? They: Will only
For states covered by a reciprocity agreement, how do taxpayers who live in one state and work in another avoid double taxation?
They:
Will only pay income taxes to their state of residence.
May claim a credit for taxes paid to the nonresident state on the resident state's return.
Deduct the nonresident wages on the resident return.
Pay taxes to the nonresident state at a reduced rate.
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