Minnesota Ends Income Tax Reciprocity
Minnesota acted late last week to end the income tax reciprocity agreement between our states effective at the end of this year. This action now means that beginning in 2011 the 80,000 taxpayers that live in one state but work in the other will be required to file an income tax return to both states. Wisconsin residents will be credited for the taxes they pay in Minnesota on their Wisconsin tax returns.
I am disappointed that Minnesota has chosen to take this action that will inconvenience many taxpayers. Earlier this year, I circulated a letter among state legislators to request Governor Doyle’s attention to preserving the income tax reciprocity agreement. The letter can be read through the above link.