I'm moving to a new state, how will this affect my taxes?

[Chuppecj]

Hi, I'm moving from Florida to Illinois in November (a state without state income tax to a state with income tax) for a new job, how will this affect my taxes? And, more specifically:

- The job will be in Illinois but I don't live in Illinois yet and I had to submit the IL-W-4 selecting Illinois as part of the onboarding process. Will I start paying IL state income tax with my first paycheck in 2024 regardless if I live in the state or not yet?

- Do I have to start paying state income tax immediately or is it not until after a certain amount of days living in the state before I'm considered a resident and have to start paying the state income tax?

- Will I likely be reimbursed for state taxes paid once I file my taxes in 2025 or likely owe money?

- Any general advice on how to properly file my state income taxes for 2024?

[Cindy4]

Yes, you will be responsible for paying Illinois tax as soon as you start earning money from Illinois.  Illinois does tax non-residents on Illinois sourced income.  They have a flat 4.95% income tax rate on individuals, so you will want to make sure you are having at least that much withheld.  This will determine whether you end up owing or getting a refund. 

TurboTax does offer Illinois state tax preparation made easy by transferring everything needed from the federal information you enter to the state forms.  You will have to answer a small bank of additional questions related specifically to the state because all of the states are very different from the federal and each other.

Here is a good resource for more in depth informatin regarding how Illinois taxes individual income:

https://tax.illinois.gov/individuals/taxableincome.html

Hope this helps!

Cindy

[BettieG]

Hi and great question!  In addition to what Cindy4 said, in 2024, you will need to file a tax return in Illinois to report your earned income from Illinois sources while a non-resident of Illinois AND your earned income from any source while you were a resident of Illinois.

Please see these articles for additional information:

• Multiple States – Figuring What’s Owed When You Live and Work in More Than One State
• How to File Taxes in Multiple States After Moving
• How do I allocate (split) income for a part-year state return?

You would be an Illinois resident at the point at which you move there permanently with no intent to be there on a temporary basis.  Until that point, you would still be a resident of Florida (presumably), but you would still need to file an Illinois tax return to report your Illinois sourced income.  This is likely why your new employer asked you to provide the IL-W-4 and began withholding Illinois taxes from your wages.

In essence, then, you will need to file a 2024 tax return in Illinois to report your Illinois sourced earnings (regardless of where you lived when you earned them) and any income you received after you moved to Illinois.

As you know, Florida has no income taxes, so there will be no need for you to file a Florida tax return in 2024.

I hope this is helpful.