2006-11-13 14:20:49 · 6 answers · asked by woozit62 1 in Business & Finance ➔ Taxes ➔ United States
It depends on the rules for the state of Illinois. If Illinois has a reciprocal agreement with a state, you could end up owing taxes in both states, or only in your state of residence (Illinois, I presume). If they don't have an agreement, you could have to pay taxes based on the state you earned the wages in, and owe none to Illinois.
When I moved to Arizona from Michigan, because I only had income part of the year in Arizona, I actually paid taxes on the wages at a higher rate than a full year resident in Arizona. Plus, I had to file state income tax returns in both states.
You need to get some good advice. Not rely on this forum for your information.
2006-11-13 14:36:39 · answer #1 · answered by Kaia 7 · 0⤊ 0⤋
If you worked for an Illinois company and just traveled to another state to work, then that is taxable in Illinois. If you were actually a resident of that other state then you will have to file taxes there too. That happened to me. I was employed in two different states in one year and had to file taxes in both states that year. Don't worry, you only have to file once for federal.
2006-11-13 22:26:19 · answer #2 · answered by Josh P 3 · 1⤊ 0⤋
If you earned the income while RESIDING in the other state, it's taxable in the state where earned and IL will require you to submit a form saying it was earned while you were a "partial year resident". Otherwise, if you live in IL, all your income is taxable there regardless of where it's earned.
2006-11-13 22:23:34 · answer #3 · answered by hagbard73 2 · 0⤊ 0⤋
Depends--did you have a residence in another state or just Illinois. It has to be reported to the state where you file your return, but sometimes taxes are filed and sent to both states, but prorated. You really can't escape the taxes because the employer will send copies of your W-2 to the state.
2006-11-13 22:27:09 · answer #4 · answered by Darby 7 · 0⤊ 0⤋
If you live in Illinois, all of your income is taxable in Illinois.
2006-11-13 22:22:04 · answer #5 · answered by united9198 7 · 0⤊ 0⤋
You have to file taxes from the state in which the money was made. I moved from KY to TN, I had to pay KY taxes on the money I earned in KY, and file in both states. My husband lived in Georgia and worked in South Carolina, he had to file income taxes for the state of South Carolina, not Georgia.
2006-11-13 22:23:18 · answer #6 · answered by miss_fred 3 · 0⤊ 0⤋