Q. Will every pay check be deductible or will it affect end of year taxes?
A. Ask your employer how they will handle state withholding. Usually, in that situation, the employer will withhold only IL tax.
Even though IL tax will be withheld, you still need to file an IL non resident return. The credit that IN gives you for the tax paid to IL should be sufficient that you do not need to have IN tax withheld, from you pay, and you will not owe any IN state tax when you file your IN resident return. You may still owe IN county income tax.
