Missouri and Illinois do not have reciprocal agreements. This means, any income earned in MO as a non resident of MO and a resident of IL, would be taxable to IL.
IL does allow a credit for taxes paid to other states. Illinois does have a flat tax rate of 4.95%. So if your husband earned $43,823, then he would have a tax liability as a resident of Illinois to the state of IL of $2,169. Then he would have received a credit for the taxes paid of $1,400 for the taxes paid to MO. This would leave a tax liability of $769. However, if you received any other credits, this could reduce the amount you owed to $585.
But basically, the reason you owe to IL is because the amount he paid to MO did not give you enough of a credit to completely offset what he would have paid if he were living and working in IL.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
