How would I put on my taxes that I was taxed in the state that I worked in, but not my tax home state in a reciprocal state? My tax home is Illinois, but taxed in Iowa.

My tax home and primary residency is Illinois, but my employer put down the state that I worked in, Iowa, for that states' taxes and not Illinois. How do I show this on my taxes? Would I fill out the "Credit for taxes paid to another state" section?

680

Level 15

Apr 1, 2025 12:49:50 PM

First, you should file Iowa Form 44-016 with your employer so that they cease withholding Iowa taxes. Here's a link to that form:

https://revenue.iowa.gov/media/2318/download?inline

Illinois will not give you a credit for mistakenly withheld Iowa taxes. In order to have those taxes refunded to you, you must file a non-resident Iowa tax return, on which you show the withheld Iowa taxes but claim zero Iowa income. See Tax Withheld in Error in this Iowa tax reference:

https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/1040-expanded-instructions/note-additional-information

Your income, including your Iowa earnings, is 100% taxable by your home state of Illinois.

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How would I put on my taxes that I was taxed in the state that I worked in, but not my tax home state in a reciprocal state? My tax home is Illinois, but taxed in Iowa.