At tax time, those who work in the state of Wisconsin but don’t actually live there may worry that filing their tax return may be more difficult than usual. However, across the United States, working in a border state near your resident state is actually quite common. There are agreements in place between certain states that exempt a taxpayer form having to pay income tax on money they earned outside of their home state.

These agreements, known as reciprocal tax agreements, help to simplify tax time for a commuter. For those who work in the state of Wisconsin, but live in Illinois, Indiana, Kentucky or Michigan, you’re in luck! Reciprocal agreements exist between these states and Wisconsin, which means that you won’t have to pay Wisconsin income tax on any money you earned while working in the Badger State. All you have to do is file Form W-220 with your employer, which qualifies you for the exemption.

Reciprocal agreements only apply to employment income, however, so if you have other sources of income from Wisconsin, you may still have to file a return in both your home state and Wisconsin. Unearned sources of income can include lottery winnings, capital gains, and interest income.

If you have non-employment income, or if your employer accidentally withheld taxes in Wisconsin, then you’ll need to file a tax return in both states.