It depends on the amount of unemployment income you received. For Arizona taxpayers; if you are Single, Married Filing Separately or Head of Household and your Arizona Adjusted Gross Income (AAGI) is at least $5,500 or your Gross Income (GI) is at least $15,000 you must file. If you are Married Filing Jointly and your AAGI is at least $11,000 or your GI is at least $15,000 you must file.
If your unemployment meets the filing requirements above, you will file a non-resident Arizona tax return Form 140NR.
For Illinois taxpayers: Who must file an Illinois tax return?
If you were an Illinois resident, you must file Form IL-1040 if
- you were required to file a federal income tax return, or
- you were not required to file a federal income tax return, but your Illinois base income from Line 9 is greater than your Illinois exemption allowance.
- For tax years beginning January 1, 2016, it is $2175 per exemption. If someone else can claim you as a dependent and your Illinois base income is $2175 or less, your exemption allowance is $2175. If income is greater than $2175, your exemption allowance is 0.
Resident State: All income worldwide is required to be
reported on your resident state return. Any money that is also taxed in a
nonresident state allows you to use "
credit for taxes paid to another state" when you complete your resident state return.
Your resident state does not want you to pay tax twice on the same
income. The credit will be the amount of tax charged by the nonresident
state or the tax that would have been charged by the resident state, whichever
is less.
File the AZ return first, if applicable, then file the IL return, if applicable, and use the credit for only the unemployment income.
