2007-04-15 14:52:39 · 3 answers · asked by Sherry H 1 in Business & Finance ➔ Taxes ➔ United States
The bad news is yes, I do think that you will need to file both a form IT-40 for Indiana and a form IL-1040 and Schedule NR for Illinois. The good news is that Indiana allows you to take a credit (Schedule 2, Line 5) for taxes paid to other states so at least you will not have to pay double state taxes, but you will need to file in both states.
2007-04-15 15:09:13 · answer #1 · answered by jasontcpa 2 · 0⤊ 0⤋
Yes. You will need to file a tax return for each state in which income has been earned. However, so that you are not taxed on the same income by more than one state, your state of residence allows you a credit for taxes paid to other states.
However, if your tax rate in IL (and Chicago, if you are working there) is higher than it is in IN, your IN credit will be less than the tax you paid to IL.
2007-04-15 15:06:36 · answer #2 · answered by asktheknowitall 2 · 0⤊ 0⤋
Yes. You file a nonresident return in IL, listing only the IL income and pay any taxes due. Then you file a resident return in IN, listing all income from all sources, and take a credit for the IL taxes paid.
2007-04-15 14:57:59 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋