We live in Illinois but my daughter goes to college in Lexington, KY. She has IL drivers license, but rents a house in Lexington and works in Lexington as intern. My understanding is that my daughter should be considered full time resident of IL. The company she works for withheld state income taxes and payed those to KY. My understanding is that because Illinois and Kentucky have reciprocal agreement, the company should not have payed those income taxes to KY, but to IL. Now my daughter owes those taxes to IL. Can she claim she was a Kentucky full time resident and file only KY tax return? If not, what should be done to transfer the already payed state income taxes from KY to IL?
Thanks
