topic Lived in one state worked another in State tax filing

Lived in one state worked another

traceyhates2wait — Wed, 11 Feb 2026 04:29:19 GMT

I am a full time resident of Illinois but work full time in Missouri. My payroll department I didn't need to withhold Illinois taxes but when I started to file my state taxes, I am looking at a good size refund for Missouri but a huge amount owed to Illinois. I paid taxes to Missouri for wages earned in Missouri, I live in Illinois. Why would I have to pay taxes on earned wages twice? That doesn't seem right?

Re: Lived in one state worked another

TomK2023 — Mon, 05 Feb 2024 17:36:59 GMT

As an Illinois resident, you must file Form IL-1040 if you were required to file a federal income tax return.

You will also need to file a non-resident tax return for Missouri as well.

Please see TurboTax FAQ: How do I file a nonresident state return?

Re: Lived in one state worked another

traceyhates2wait — Tue, 06 Feb 2024 05:27:46 GMT

So I’m paying tax twice because that’s what it amounts to. I get a $1000 refund from Missouri but owe $1600 to Illinois … seems off to me still. Like I missed a credit or something.

Re: Lived in one state worked another

ee-ea — Tue, 06 Feb 2024 06:19:10 GMT

… seems off to me still. Like I missed a credit or something.

You are. You are missing a credit on the resident state return for the taxes paid to the

non-resident state.

Re: Lived in one state worked another

Hal_Al — Tue, 06 Feb 2024 13:55:48 GMT

The general rule is (and it applies in your case): your report all your income on your home state return, even the income earned out of state. You file a non-resident state return for the state you worked in and pay tax to that state. Your home state will give you a credit, or partial credit, for what you paid the non-resident state. You will have to file a non resident MO state return and pay MO tax on the income earned there.. You will also file an IL full year resident return and calculate tax on ALL your income. IL will give you a credit, or partial credit, for the tax you pay MO. So, there will be little or no double taxation, but you have the cost and hassle of filing two state returns. Do the nonresident state return first, so TT can properly calculate the credit.