Individual Income Tax
Working in Another State

  1. I am a resident of Wisconsin. Do I have to include the income I earned in another state on my Wisconsin tax return?
  2. What is reciprocity, and which states have reciprocity with Wisconsin?
  3. What is the status of the reciprocity agreement with Minnesota?

  1. I am a resident of Wisconsin. Do I have to include the income I earned in another state on my Wisconsin tax return?

    Yes. All income received by a Wisconsin resident is reportable to Wisconsin regardless of where it is earned. Wisconsin allows a credit for the net income tax you pay to other states on income that is taxed by both Wisconsin and the other state. In order to claim this credit, you must:

    • File an income tax return with the other state to determine the amount of net tax paid to that state.
    • File Wisconsin Form 1.
    • Attach a copy of the other state's income tax return.
    • Attach Wisconsin Schedule OS, Credit for Net Tax Paid to Another State.
    • Attach your Form W-2 (wage statement) or other withholding statement from the other state.

    The amount of credit cannot exceed your Wisconsin net tax liability. Please see the Schedule OS or Wisconsin Publication 125, Credit for Tax Paid to Another State, for further details.

  2. What is reciprocity, and which states have reciprocity with Wisconsin?

    Wisconsin currently has reciprocity agreements with four states: Illinois, Indiana, Kentucky, and Michigan. These agreements state, in general, that residents of these states will be taxed on personal service income by their home state, rather than by Wisconsin. Conversely, Wisconsin will tax Wisconsin residents working in one of these states and the other state generally will not tax the personal service income of Wisconsin residents who are employed in that state. Reciprocity applies only to personal service income. Personal service income generally includes salaries, wages, commissions, and fees earned by an employee. Reciprocity does not apply to other types of income, such as gains on the sale of property, rental income, and lottery winnings. For more information on Wisconsin's reciprocity agreements, see Publication 121, Reciprocity.

  3. What is the status of the reciprocity agreement with Minnesota?

    Minnesota's reciprocity agreement terminated on December 31, 2009.

    Beginning January 1, 2010 income earned in Minnesota by Wisconsin residents is reportable to both states. Wisconsin residents owing tax to Minnesota may use Schedule OS to claim the credit for net tax paid to another state.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2486
Fax: (608) 267-1030
Email: DORIncome@revenue.wi.gov

Page last updated December 27, 2013