IL and IA have a reciprocal agreement. Your unemployment benefits are taxable in the state you lived at the time you received the unemployment benefits.
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If you lived in IL and IA during the year, allocate the unemployment benefits to the month's you lived in, in each state.
- If you had IL income taxes withheld from your unemployment, while living in IA, you will need to file an IL nonresident income tax return, to get the IL income taxes you paid.
To file an IL nonresident income tax return, follow these instructions: https://ttlc.intuit.com/replies/3302052
For additional information about reciprocal states, click on What is a state reciprocal agreement?
