topic Unemploment in State tax filing

Unemploment

JS216 — Fri, 07 Mar 2025 00:52:22 GMT

If I was required to file a seperate tax return for the unemployment how do I go about getting that money back from the state of WI?

Re: Unemploment

AmyC — Fri, 07 Mar 2025 00:59:47 GMT

Unemployment is filed with your earned income on your state return.

If you filed a return with only unemployment, you need to file an amended return to include all of the income.
If you mean WI took state tax out of your employment, you should see that on the tax form they sent. It will go into your state return as a credit against your tax liability.

If you reply with more information, we are glad to help.

Re: Unemploment

JS216 — Fri, 07 Mar 2025 01:08:07 GMT

I received unemployment from IL I included this income on my WII tax return & pad the required tax to WI not IL. I thought this was reciprocal

Re: Unemploment

KrisD15 — Fri, 07 Mar 2025 01:11:57 GMT

The reciprocal agreement only covers wages, not unemployment nor investment earnings.

Re: Unemploment

JS216 — Fri, 07 Mar 2025 01:13:08 GMT

Let me try to be more clear. I live in WI but work in IL. I collected IL unemployment and included this is my total income to the state of WI. Illinois is now coming back saying I owe the tax on the unemployment. I already paid this to WI. Do I need to file amended returns for both states?

Re: Unemploment

JS216 — Fri, 07 Mar 2025 01:15:07 GMT

So I have to file amended returns and try to get this money back from WI?

Re: Unemploment

DawnC — Fri, 07 Mar 2025 01:30:18 GMT

Yes, you need to amend your state returns. You will need to make the changes on the federal return, but you won't have to file the federal amendment.

You need to add a nonresident IL return. How do I file a nonresident return. The 1099-G should be from IL - that income and the tax withheld is IL sourced and should be reported on the Illinois nonresident return. When you go through the nonresident return, TurboTax will ask you which income belongs to IL. Your resident state will tax all of your income, but Wisconsin will give you a credit for tax paid to IL.

How to Amend

Re: Unemploment

JS216 — Fri, 07 Mar 2025 11:09:12 GMT

This is from 2020. Illinois is finally asking about it. How do I go about getting a refund from WI? Will the amended return do that?

Re: Unemploment

KeshaH — Fri, 07 Mar 2025 12:33:43 GMT

You'll need to file an amended return with Wisconsin and claim a credit for the tax paid to Illinois. Complete the Illinois return first so that you have the information needed to claim the credit in Wisconsin.