I live in Illinois and work in iowa. this had me fill out a iowa return but I don't believe I have before. why is that?

[DS30 · Accepted solution]

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

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 IA 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.

Please note that you will not have a delete option until you actually start working on the state. Select that you want to start the state return under the state taxes tab. The system will start calculating. Then go back into the state tab at the top of the screen and you should now get a choice for that state to either continue or delete. You won't be charged for just starting the state return. You would only be charged (if applicable) when you are getting ready to file.

[Iowaman7]

The TurboTax site keeps wanting me to pay IL tax, and get a credit for Iowa. But it appears I should not file in IL. But TurboTax is saying I need to and wants me to file in both states. 

This doesn't seem right.