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End of Minnesota-Wisconsin tax reciprocity means more paperwork for border-crossing workers

Two state income tax returns are in the future for Minnesotans who work in Wisconsin and Wisconsinites who work in Minnesota, because a tax reciprocity deal between the two states has expired.
The Winona Daily News notes that this will be the first

Two state income tax returns are in the future for Minnesotans who work in Wisconsin and Wisconsinites who work in Minnesota, because a tax reciprocity deal between the two states has expired.

The Winona Daily News notes that this will be the first tax season since 1968 that the double paperwork requirement has been needed. It affects about 46,000 people.

The story quotes CPA Mary McDonald, who has lots of clients crossing the border.

“It’s not going to cost anybody any more,” McDonald said. “It’s just going to be a pain.”

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More Wisconsin residents commute to Minnesota to work than the other way around, which means Wisconsin had to reimburse Minnesota for the extra income tax collected. But Wisconsin was taking about 18 months to pay it back, which led Minnesota officials to call it off.