LA CROSSE, Wis. -- Those who live in Minnesota and work in Wisconsin., or vice-versa, could soon have less of a headache.
The two states are close to finalizing an agreement to reinstate tax reciprocity. The agreement was suspended in 2009, after Wisconsin fell behind on payments owed to Minnesota.
An estimated 80,000 people commute between the two states for work.
Currently, they have to file income taxes in both states. That could change in time for the 2013 tax year.
Both states' Department of Revenue secretaries are working on an agreement that would allow people to only have to file in one state.
People like Sheila Chapel are hopeful a deal can get done soon. Chapel has worked at Gundersen Lutheran Hospital in La Crosse for the last six years, but she lives across the border in La Crescent.
"I'm very excited. It's great to see cross-border cooperation between the two state governments and to come to a common goal that will help the employees that work in each state," said Chapel.
State Senator Jennifer Shilling (D-La Crosse) says the proposed agreement would require Wisconsin to make more frequent payments to Minnesota.
She thinks it's a compromise worth making to help thousands of people.
"This is a headache for employers and this is a headache for constituents that live in one state and work in another," said Shilling.
"And it does cost them (money)," she added.
Even if the deal is finalized before this year's tax deadline, it will not impact 2012 filings. The goal is to have the agreement in place for the 2013 tax season.