If you're an Iowa resident receiving unemployment compensation, that income is taxable by both states. You must report it on a non-resident IL return, as well as on your home state IA return. You'll be able to claim a credit on your IA return for the taxes paid to IL on that income, so it won't be double-taxed.
Note: Both Illinois and Iowa have adopted the federal unemployment exclusion, which means that neither state will tax the first $10,200 of your 2020 unemployment compensation, as long as your federal MAGI is less than $150,000.
https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation#:~:text=If%...
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
