Question
In states covered by a reciprocal agreement, how do taxpayers who live in one state and work in another generally avoid double taxation on their
In states covered by a reciprocal agreement, how do taxpayers who live in one state and work in another generally avoid double taxation on their wages?
1-They will file a tax return in the nonresident state and request a refund of all taxes withheld from wages.
2-Their employer will not withhold income tax from the nonresident state and no tax on the wage income will be due to that state at the end of the year.
3-They will claim a credit for taxes paid on the return of the resident state.
4-They will make a standalone request for refund for amounts withheld from their state of residency
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