Even though there are Reciprocity Agreements with Illinois, Wisconsin, Iowa, Kentucky, and Michigan for taxpayers that live in one state and are an employee in another state, this agreement does not cover taxpayers that are self-employed and live in one state and work in another state.
Filing a Wisconsin Income Tax Return A nonresident or part-year resident of Wisconsin must file a Wisconsin income tax return if his or her gross income from Wisconsin sources is $2,000 or more.
Filing an Iowa nonresident income tax return is required if his/her net income from Iowa sources is $1000 or more.
When you prepare a resident and nonresident state returns in TurboTax, make sure you prepare the nonresident returns first and the resident (Illinois) return last. This is so the software program can calculate the amount of credit that should be included on your Illinois return to help offset double taxation.
[Edited 02.24.18 /1:53 pm]
