i recently worked a 2 month temporary assignment in illinois. i'm a resident of california. i noticed that my recruiting agency has withheld quite a lot for illinois state taxes. i would assume since i am not a resident of illinois, i'm not eligible to file a tax return. i also have to pay taxes on that income in california. am i entitled to get that money back from the recruiting agency? what do i do?
2007-06-26 07:32:01 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You should consult a CPA for the best answers... but, I had nearly the identical situation in '06 ...and got a refund from both CA and IL.
If you lived in Illinois while making money there...you do have to pay income tax there...but, you should be entitled to a refund if you over paid your IL taxes. And, keep in mind...you should not have to pay CA tax on the money earned in IL...you only pay it to one or the other.
If I remember correctly, IL taxes were far less than CA taxes...so I don't know why they withheld so much?
I doubt the recruiting agency will refund any disputed amount...you'll probably have to wait until you file your taxes.
Good Luck!
2007-06-26 07:44:09 · answer #1 · answered by widewillie 4 · 0⤊ 0⤋
Because you worked in Illinois, you were charged taxes there. File tax returns in both California and Illinois - you'll probably get back 100% from Illinois.
2007-06-26 07:36:44 · answer #2 · answered by zippythejessi 7 · 0⤊ 0⤋
You must file a CA and IL state tax return. You will get credit for the tax paid in each state and should not be paying twice.
2007-06-26 09:40:44 · answer #3 · answered by ? 6 · 1⤊ 0⤋
Ugh. Check your California state tax laws regarding 'foreign income'. In many cases, you end up filing a return in the 'foreign state' for the time and income you earned while there. Then your own 'home state' has a credit or adjustment for taxes paid elsewhere.
Sounds nasty, but that's the way it is.
2007-06-26 07:36:58 · answer #4 · answered by acermill 7 · 0⤊ 1⤋
My understanding: you owe tax to the state in which it was earned. Also, if your home state taxes the amount at a higher rate, you owe your home state the difference between what you have paid and what home state requires. At least I believe that to be the case when you win in Atlantic City & live in NY. Double check tho
2007-06-26 07:38:59 · answer #5 · answered by james c 2 · 0⤊ 0⤋
yes
2007-06-26 07:39:29 · answer #6 · answered by Anonymous · 0⤊ 0⤋