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Level 2
February 9, 2022
Question

Illinois nonresident

  • February 9, 2022
  • 1 reply
  • 0 views

I live in Nevada but worked remote all of 2021 for a company in IL.  They withheld IL state income tax for the entire year.  When TurboTax asks how much of the income did I earn while working in Illinois can I enter 0?

    1 reply

    Level 10
    February 9, 2022

    Yes, and this will result in the entire amount withheld being refunded to you. Illinois has not stated that telecommuting non-residents are subject to tax because their employer is in Illinois. As long as you have not spent more than 30 days in Illinois, then you are not subject to their state tax. 

     

    However, the state does require that if you are requiring a refund of taxes withheld in error, you attach a letter of explanation from your employer. You will also want to notify your employer to change your state withholding. 

    Level 2
    February 9, 2022

    Thank you for the prompt reply.  The company has switched me from W2 to 1099 for 2022 moving forward so IL taxes will no longer be an issue.