So which states are reciprocal states? The following conditions are those under which the employee works. If an employee lives in a state without a mutual agreement with Indiana, they can get a tax credit for taxes withheld for Indiana. Fortunately, Christie turned the record up when a cry from locals and politicians rose. Reciprocal tax treaties allow residents of one State to work in other States without withholding tax on their wages for that State. They would not have to file undeed public tax returns, provided they follow all the rules. You can simply provide your employer with a necessary document if you work in a state that has reciprocity with your home country. Suppose an employee lives in Pennsylvania but works in Virginia. .
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