I am an Iowa resident. I earned some income in Illinois. They withheld Iowa taxes but no Illinois taxes. Turbo tax says I owe Illinois. I don’t think that’s right.

[TomK2023]

You must file both an Iowa tax return (as a resident() and an Illinois non-resident tax return to report this income correctly within the program.

Iowa and Illinois are reciprocal states meaning that they have an agreement not to deduct taxes for the state that you work in (Illinois)  when you live in another state (Iowa).  

However, you must enter your personal information in your "My Info" section correctly by indicating that you live in Iowa, but that you also earned income in Illinois when those questions are asked during the interview process.

Complete your Federal tax return (including adding your W-2 from IL), and then move on to complete your non-resident tax return next (Illinois), and then your state of residence (Iowa) tax return.  It's important that you complete your tax returns in the correct order so that all of your entries transfer to the correct forms.

[SteamTrain]

@tomecekjonathan 

Hmmmm...maybe maybe not.

IF the state area of your W-2  (boxes 15,16,17) only shows IA withholding and IA income.  Then you don't prepare and file an IL nonresident tax return at all.   (unless you had other IL income).

IF that is the case, in the Personal Info section, you DO NOT say you worked in another states...since it is all treated As-If you worked in IA.

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Deleting the IL non-resident tax return that was started with the "Online" software:

How do I delete my state return in TurboTax Online?