2007-03-01 01:38:03 · 3 answers · asked by luke10385 2 in Business & Finance ➔ Taxes ➔ United States
You pay taxes to Indiana, which is where you reside. However, you could be subject to local wage taxes if any in Illinois.
2007-03-01 02:09:19 · answer #1 · answered by Joseph H 4 · 0⤊ 0⤋
You will need to file tax returns for both states. You will want to fill out first the Illinois income tax form first to see what your tax liability is. You will find this number on Line 15 of Form IL-1040. Do not forget to fill out schedule NR.
Next you will need to fill out the Indiana tax form. When you get to Schedule 2 Line 5 will allow you to get a tax credit your Illinois tax liability. There is a worksheet that is on page 29 of the IT-40 instructions that will help you enter the correct number. This credit will prevent you from having to pay state tax twice on the same income.
When you send in your Indiana tax return do not forget to attach a copy of your Illinois tax has proof of your liability.
2007-03-01 10:20:31 · answer #2 · answered by jks_mi 3 · 0⤊ 0⤋
no you dont pay twice...your tax form will show that you paid in Ill...and you will be credited in that state
2007-03-01 09:49:52 · answer #3 · answered by rich k 1 · 0⤊ 0⤋