Neither of these responses are currently completely accurate. There is a wage threshold for Illinois. If you meet that threshold and your employer is in Illinois, you will owe Illinois taxes regardless of where you live. Your company has to have your work location listed as your state of residency (a Satellite worker) to ensure your exempt from Illinois taxes, with the exception of the above wage exception. Also, Illinois base your taxes on Residency "AND" employer location.
How do I know this, because I just went through this with the Illinois IRS. If your in a No-Income tax state such as Arizona, Texas or Tennessee, you will get some of the money back. If you manage to not have any taxes withheld and do not file a state return with Illinois, good luck.
