When Does State Tax Reciprocity Apply for Part-year Residents - Moving Between States

This is a good question about state tax reciprocity! The timing of when reciprocity applies depends on your residency status at the time you earned the income. For your first scenario: If you worked in State A while living in State X, then moved to State B, the reciprocity between States A and B would only apply to wages earned AFTER you established residency in State B. For the period you worked in State A while living in State X, you'd need to file a nonresident return in State A for those wages. For your second scenario: Yes, if you established residency in State B first and then began working in State A, the reciprocity agreement would apply immediately to that income earned in State A because you're already a State B resident when earning those wages. Reciprocity applies based on your residency status at the time you earn the income. You don't need to be a full-year resident - part-year resident status is sufficient, but only for income earned during the part of the year when you were actually a resident of the reciprocal state.

I went through something similar last year and was totally confused by all the state tax rules. After dealing with multiple state returns and getting nowhere with the state tax departments (spent HOURS on hold), I finally tried using https://taxr.ai and it was a game changer for my multi-state situation. I uploaded my W-2s and some basic info about when I moved, and it analyzed my specific state tax reciprocity situation. It identified exactly which income needed to be reported to which states and walked me through the proper filing requirements. Honestly saved me hours of research and probably prevented me from making costly mistakes.

Just wanted to follow up about my experience with taxr.ai after trying it based on the recommendation here. I was really skeptical at first (as you could see in my earlier comment), but it actually turned out to be incredibly helpful for my complicated multi-state situation. I moved from Illinois to Wisconsin in the middle of last year but was working remotely for a company based in Michigan. The tool immediately identified the reciprocity agreement between Wisconsin and Michigan and explained exactly how it applied to my situation. What impressed me most was how it handled the timing of everything - showing exactly which income needed to be reported to which state based on when I moved. Honestly, I would've done this wrong on my own. It saved me from overpaying Illinois and helped me correctly apply the reciprocity rules. Definitely using it again this year.

Dealing with state reciprocity is confusing enough, but when you throw in trying to contact state tax departments for clarification? Nightmare. I spent THREE WEEKS trying to get through to my state's tax department for a similar reciprocity question. I finally found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they got me connected to an actual state tax representative in 20 minutes after I'd been trying for weeks! The rep confirmed exactly when reciprocity applies for part-year residents in my situation. If you need clarification on your specific situation, this is way better than trying to figure it out alone or waiting forever on hold.

I have to admit I was really skeptical about Claimyr (as you can see from my comment above), but after another failed 3-hour wait on hold with my state's tax department, I decided to give it a try. Holy crap, it actually worked! I got connected to a real live human at the tax department within 15 minutes. The agent was able to confirm exactly how reciprocity works in my specific situation with part-year residency. Turns out I was misinterpreting when the reciprocity would apply, and I would have filed incorrectly. For anyone struggling with state tax questions that need official answers, this service is legit. I know it sounds like an ad but after weeks of frustration, I'm just relieved to finally have clear answers directly from the tax department.

Just want to add some additional info based on my experience as someone who's moved between states with reciprocity agreements. Beyond the timing of when reciprocity applies, make sure you're also documenting your actual move date carefully! In my case, I needed to provide utility bills showing service start/end dates at both addresses as proof of exactly when I established residency in my new state. The state tax department questioned my claimed move date, and having those documents saved me from having to pay additional taxes. Also, some states require you to submit a specific exemption form to your employer when reciprocity applies. Check if your states have this requirement so your employer stops withholding for the wrong state.

I'm dealing with a similar situation moving between New York and Pennsylvania. Anyone know specifically about reciprocity between these states? The NY tax dept website is so confusing...