I currently owe IN money, and I got nothing from IL. Isn't there a way that at least some of the taxes that I paid to IL should transfer over to IN since that is where I reside?
2007-04-02 02:44:25 · 2 answers · asked by geegee0834 2 in Business & Finance ➔ Taxes ➔ United States
Most states allow you to deduct state income taxes paid to other states. That doesn't mean that you'll get something back, that would depend on how much was withheld, but normally you wouldn't be double-taxed on the amount. If the state where you live has a higher tax than the state where you work, it's very possible you'd still owe the difference, but you'd just be paying your state what you would have anyway if you had paid tax on your earnings to the state where you live.
2007-04-02 02:48:48 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
IN and IL no longer have a reciprocity agreement between them. You must file a non-resident IL return, lising the IL income only, and pay any tax due. Then you must file a resident IN return listing all income from all sources. You then take a credit on your IN return for the IL taxes paid.
2007-04-02 03:16:58 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋