They are only refundable if she paid more than she owes based on her income. If you do not live in a state but you do work in the state, unless the state has a reciprocal agreement with your home state (IL does NOT with CT)
Yes, the income should be reported on her CT resident state return. She will be able to claim a credit for taxes paid to IL on her CT return. You will need to file the IL return first so you know the actual IL tax liability. The actual tax liability, not the amount withheld, is the amount you can claim for the credit.
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