I am technically not eligible for the credit for taxes paid to NY-state because the income was sourced within the state of IL, and I did not physically travel to NY to earn that income. Even though I have not stepped foot in NY, I am being double taxed.
doesn't seem to agree with Illinois IL 1040-CR instructions. However, forms and publications are unofficial from a standpoint if they conflict with the actual tax laws.
in another thread, most OPs stated that you could claim credit for the double tax income. however, one respondent had a different answer supposedly based on actual experience.
https://ttlc.intuit.com/community/state-taxes/discussion/live-in-il-but-work-for-ny-company-unsure-a...
Not true. I just went through this. IL Department of Revenue is going to send you mail audit asking for your employer to provide days worked in each state. No employer will do that and therefore IL will not allow credit. Publication 302 exception (? no current Ill PUB 302). Also, there is a case that went through the IL court system in 2015 that allows for that double taxation scheme, so basically save yourself 10% in penalties and pay tax in both states…
July 6, 2022 5:08 PM
I do not know NY law so is it possible that you are entitled to a credit in NY for the wages taxed by Illinois?
