Tax reciprocity should resume between Wisconsin and Minnesota

It is about time. A tax reciprocity agreement could be resurrected between Wisconsin and Minnesota. For decades, the two states had an understanding that if you lived in one state but worked in the other, you would only have to file tax returns in the state in which you reside. That came to a screeching halt 8 years ago, when Minnesota’s Governor called off the deal. At that time, Wisconsin was late making its payments to Minnesota to make the reciprocity agreement fair for both states. Ever since, people who live in one state but work in other have been having to file returns in both states. Some 80,000 people travel between the two states to go to work, 56,000 of them Wisconsinites working in Minnesota. Due to our border location, a number of those people are from our area, and all have been inconvenienced by having to fill out two sets of state tax returns. Now, the state of Minnesota has passed legislation making all Minnesotans working in Wisconsin eligible for an income reciprocity tax credit. And the bill directs the state to resume negotiations with the state of Wisconsin in search of a permanent reciprocity agreement. The two states should get to work hammering out an agreement, so that can be in place before the next tax season.