topic Re: IA / IL Reciprocity Missing in State tax filing

IA / IL Reciprocity Missing

no109 — Wed, 02 Apr 2025 03:21:40 GMT

Turbotax Premium, I think wrongly, tries to make you file an IL return when you live in IA and work in IL. It reads:

"This money gets taxed twice, by both Iowa and the other state.
But don't worry if you see double-taxed income as you go through your Iowa return. Later on we'll help you get a credit that offsets paying double taxes."

Everything I've seen suggests you simply file your IA return like normal and file the non-resident form with your employer. No IL return should be needed, right?

Re: IA / IL Reciprocity Missing

Mike9241 — Wed, 02 Apr 2025 03:48:46 GMT

you would only need to file an Illinois return if you had non-wage income/loss from Illinois activities, such as a rental OR if your W-2 reflects Illinois withholding. Line 15 would say IL. Assuming you only had IA wages and IA w/h, you have to fib to Turbotax and say you earned income in no other state.

Re: IA / IL Reciprocity Missing

TomD8 — Wed, 02 Apr 2025 12:38:19 GMT

If you live in IA and work in IL, file Illinois Form IL-W-5-NR with your employer so as to preclude withholding of Illinois income tax. Here's a link to that form:

https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/withholding/documents/currentyear/il-w-5-nr.pdf