I am an IA resident who earned income in Illinois, Iowa and Illinois have a reciprocal agreement, do I still need to file an Illinois return?

[jdhasty1]

I know I do not owe income taxes in IL due to the reciprocal agreement, however I cannot get the IL return to reflect this.

[DS30 · Accepted solution]

You will only need to file an IA resident state income tax return to report all income (including your IL-source wages). You will not have to file a IL nonresident state income tax return.

As you mentioned, IL and IA have what is called a state reciprocal agreement. This allows nonresidents to not have state withholding taxes taken out for wages earned in the state.

Since you will not have an IL state income tax filing, just check that you selected "no" to " Did you make money in any other states?" under the Personal Information section in TurboTax (see screenshots)

You can get rid of a state without clearing your federal return by just deleting the state from your list of states under the "State Taxes" tab.