{"id":955,"date":"2016-06-16T13:48:18","date_gmt":"2016-06-16T17:48:18","guid":{"rendered":"http:\/\/www.etax.com\/blog\/?p=955"},"modified":"2016-06-15T13:48:43","modified_gmt":"2016-06-15T17:48:43","slug":"montanas-reciprocal-tax-agreements","status":"publish","type":"post","link":"https:\/\/www.etax.com\/blog\/2016\/06\/16\/montanas-reciprocal-tax-agreements\/","title":{"rendered":"Montana\u2019s Reciprocal Tax Agreements"},"content":{"rendered":"<p>It\u2019s more common than it may seem for a person to cross state borders in order to go to work. For those that do, tax time may be a little more intensive, as they are required to fill out a tax return for the state in which they live and the state in which they work. Thankfully, states have adopted certain policies known as reciprocal tax agreements, which when they exist between two states, can exempt a non-resident worker from having to file a return in the work state.<\/p>\n<p>In Montana, workers who live in North Dakota are exempt from paying income taxes on their earning in Montana. This simplifies tax time by requiring them to only have to fill out one tax return in their home state of North Dakota. These employees just have to submit Form NR-2 to their employer to claim the exemption.<\/p>\n<p>Reciprocal agreements only cover employment income, so any other sources of income will still require a non-resident tax return to be filed. Non-employment income can include money from a variety of sources, including:<\/p>\n<ul>\n<li>Fees from consultation services<\/li>\n<li><a href=\"https:\/\/www.etax.com\/blog\/2025\/07\/15\/how-to-pay-0-capital-gains-tax-in-2025-and-make-over-100k-doing-it\/\">Capital gains<\/a> from the sales of personal property<\/li>\n<li>Rental income<\/li>\n<li>Winnings from gambling or lottery<\/li>\n<li>Income from a partnership, LLC, or S corporation<\/li>\n<\/ul>\n<p>If an employer mistakenly withheld taxes from a North Dakota resident, then that taxpayer will have to file a return in both the home state and the work state to claim a refund of the overpayment. Residents of any state other than North Dakota who work in Montana will also need to file two returns, as they are not covered by the tax agreement.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s more common than it may seem for a person to cross state borders in order to go to work. For those that do, tax time may be a little more intensive, as they are required to fill out a tax return for the state in which they live and the state in which they [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[126],"tags":[236,510],"class_list":["post-955","post","type-post","status-publish","format-standard","hentry","category-states","tag-montana","tag-reciprocal-agreements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Montana\u2019s Reciprocal Tax Agreements - eTax.com\u00ae Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.etax.com\/blog\/2016\/06\/16\/montanas-reciprocal-tax-agreements\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Montana\u2019s Reciprocal Tax Agreements - eTax.com\u00ae Blog\" \/>\n<meta property=\"og:description\" content=\"It\u2019s more common than it may seem for a person to cross state borders in order to go to work. 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