Got a new job in IL, but still live in MN for the time being

[cardioromano18]

I just started a new job remotely that is based in IL while living in MN. Do I have to fill out a W4 for MN and IL or just one of the states? 

[AmyC]

It depends,  just IL is sufficient if moving soon.. IL taxes all IL based income so you will be reporting all IL earnings to IL.

When you file your MN form next year, you can get a credit for taxes paid to IL. However, MN has a higher tax rate so you will owe MN the difference. Therefore, you may want to either:

• have MN taxes taken out as well, if staying longer or not moving
• make estimated payments to MN, if moving soon

[Mike9241]

IL does not have reciprocity with MN

IL does not tax telecommuters

so until you establish  domicile (new permanent residence) in IL, you will only be taxed in MN

then after the move, since you will be living and working in IL, you'll only pay tax there. 

you'll should ask your employer to revise your state w-4 so w/h is for IL after the move. and check to see that while you're living in MN they're w/h MN taxes. if IL you will end up owing MN and possibly get hit with penalties for under-withholding your taxes.

for the year of the move, you'll be a part-year IL and MN resident (2021 law)