Minnesota Reciprocity for State Income Tax Withholding
Minnesota Reciprocity for State Income Tax Withholding Ends 12/31/09
In September, 2009, the income tax reciprocity agreement between
Minnesota and Wisconsin was terminated for taxable years
beginning after December 31, 2009. The Wisconsin
Department of Revenue website has information about how this
will affect state tax withholding for Minnesota residents who
are working in Wisconsin.
http://www.revenue.wi.gov/faqs/ise/mnrecipro.html.
Employees who are affected by the reciprocity termination, will need to complete a new W-4 Form by December 16, 2009. Employees who do not complete a new W-4 Form will have Wisconsin income tax withholding based on zero allowances effective with 2010 payroll checks. No tax refunds will be issued.