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New Member
posted Apr 6, 2022 3:10:32 PM

Hello! I earned income in Illinois and in Wisconsin. Does this mean I need to file 2 separate forms? If not, do I combine the numbers from the 2 W-2s and file one form?

I live in Illinois and used to work there, but now I work in Wisconsin because I go to college here.

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3 Replies
Expert Alumni
Apr 6, 2022 3:38:26 PM

You don't combine the numbers from the 2 W-2s. 

Do you have taxes withheld for both states?

Is Illinois still your home state? Attending college in a state does not make you a residence of that state.

 

Wisconsin currently has reciprocity agreement with Illinois. The agreement provides that residents of IL working in Wisconsin will be taxed on income earned as an employee by their home state and not by Wisconsin.

 

 

New Member
Apr 6, 2022 3:42:50 PM

Yes, I have taxes withheld for both states. Illinois is still my home state. So do I still file taxes with my Wisconsin W-2? Or only the Illinois one?

Expert Alumni
Apr 6, 2022 4:10:01 PM

Illinois and Wisconsin have a reciprocal agreement. 

That means you only pay tax to the state in which you live. 

 

If you are in Wisconsin ONLY to attend school, you may still be considered a resident of Illinois. 

If you are a dependent, and the person that claims you is an Illinois resident, you are an Illinois resident as well. 

 

Obviously you would report both W-2 forms in the federal section. 

You don't enter your W-2 a second time.

 

Next you would file an NON-RESIDENT Wisconsin state return to get the tax withheld back. 

Allocate none of your income to Wisconsin.

You may be charged local tax, such as city or county if you worked in an area with local tax. That is no-refundable.

 

Finally file the RESIDENT Illinois return. You will be taxed on your full income. You most likely will owe tax to Illinois since Illinois tax was not withheld by your Wisconsin employer. Your Wisconsin refund cannot be sent to pay your Illinois tax. 

 

Lastly, Illinois tax my be LARGER than Wisconsin tax, so your Wisconsin refund may be less that the tax due to Illinois. 

 

Reciprocal state info