TomD8
Level 15

State tax filing

@ErnieS0 --

The taxpayer is a California resident working remotely for an Illinois Employer.

 

@shangt --

If your services are entirely performed outside the state of Illinois, your employer is not required to withhold Illinois taxes.

https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=003500050K304

 

If your employer does withhold IL taxes anyway, then you must file a non-resident IL tax return, on which you allocate zero income to IL, in order to obtain a refund.

 

If your employer does not withhold CA taxes, you must make quarterly estimated tax payments to CA.  Your income is 100% taxable by your home state of CA, regardless of its source.

https://www.ftb.ca.gov/pay/estimated-tax-payments.html

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

View solution in original post