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FAQ Articles

I am a North Dakota resident. I worked in Minnesota during the year. Are my wages eligible for exemption from Minnesota income tax under the North Dakota-Minnesota income tax reciprocity agreement?

Compensation that a North Dakota resident receives for personal professional services performed in Minnesota is exempt from Minnesota income tax under the reciprocity agreement if the individual maintains a permanent home in North Dakota to which the individual returns at least once each month while performing the services in Minnesota.  "Compensation for personal or professional services" includes wages, salaries, tips, and commissions that an employee receives from an employer and, in limited cases, distributions from a partnership.

If you are eligible for reciprocity under the North Dakota-Minnesota income tax reciprocity agreement, but your employer withheld Minnesota income tax from wages that you earned in Minnesota, you will need to file a Minnesota individual income tax return to claim a refund of that withholding.  For forms or assistance with your claim, contact the Minnesota Department of Revenue by calling 1.651.296.3781, or go to their website at www.taxes.state.mn.us.  If you continue to work in Minnesota while a North Dakota resident and remain eligible for reciprocity,  you can stop the withholding of Minnesota income tax from your wages earned in Minnesota by completing Form MW-R and giving it to your employer.

nd.gov - The Official Portal for North Dakota State Government
North Dakota: Legendary. Follow the trail of legends

Ryan Rauschenberger
Tax Commissioner
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FAQ Articles

I am a North Dakota resident. I worked in Minnesota during the year. Are my wages eligible for exemption from Minnesota income tax under the North Dakota-Minnesota income tax reciprocity agreement?

Compensation that a North Dakota resident receives for personal professional services performed in Minnesota is exempt from Minnesota income tax under the reciprocity agreement if the individual maintains a permanent home in North Dakota to which the individual returns at least once each month while performing the services in Minnesota.  "Compensation for personal or professional services" includes wages, salaries, tips, and commissions that an employee receives from an employer and, in limited cases, distributions from a partnership.

If you are eligible for reciprocity under the North Dakota-Minnesota income tax reciprocity agreement, but your employer withheld Minnesota income tax from wages that you earned in Minnesota, you will need to file a Minnesota individual income tax return to claim a refund of that withholding.  For forms or assistance with your claim, contact the Minnesota Department of Revenue by calling 1.651.296.3781, or go to their website at www.taxes.state.mn.us.  If you continue to work in Minnesota while a North Dakota resident and remain eligible for reciprocity,  you can stop the withholding of Minnesota income tax from your wages earned in Minnesota by completing Form MW-R and giving it to your employer.

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