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laurenhart44
New Member

I live in Illinois but work in Indiana? Indiana taxes are being taken out of my check. What do i do?

 
7 Replies
SweetieJean
Level 15

I live in Illinois but work in Indiana? Indiana taxes are being taken out of my check. What do i do?

If you are unlucky enough to work across state lines in a state with no reciprocal agreement with your resident state, (for instance, Illinois and Indiana), then you will need to file income tax returns for both states. However, you should also be able to claim a credit on your resident state income tax return for the state income tax that you paid for the nonresident state. 

File an IN nonresident return, and then an IL resident one.

pwagner1120
New Member

I live in Illinois but work in Indiana? Indiana taxes are being taken out of my check. What do i do?

I have done that and turbo tax says I owe money on the entire amount for both states
jbwestern
New Member

I live in Illinois but work in Indiana? Indiana taxes are being taken out of my check. What do i do?

I am having issues as well.  It says owe for indiana and illinois.  I can't figure out what i am doing wrong.   Maybe not putting credit for the other state taxes paid? Says to use long form to do that but couldn't find an option for a long form on the mobile app..
jbwestern
New Member

I live in Illinois but work in Indiana? Indiana taxes are being taken out of my check. What do i do?

Says owe very large amounts like 600 and then 700 plus on both.. can't be correct... this year is no different than the last 3.
chicagoblues11
New Member

I live in Illinois but work in Indiana? Indiana taxes are being taken out of my check. What do i do?

Do you get an INDIANA credit for ALL the taxes you paid to Illinois?  We always seem to give more to Illinois, but Indiana will only give us a portion of those IL taxes when calculating the credit due on our IN taxes
chicagoblues11
New Member

I live in Illinois but work in Indiana? Indiana taxes are being taken out of my check. What do i do?

It is possible that you did not take out enough IL taxes and the way IN calculates the credit (it is NOT for the entire amount of taxes you paid to IL), you can still owe IN money.  This is especially true if you are now getting hit by county taxes.  

We always seem to pay  more $ to IL for taxes.  IN  will calculate a credit for taxes paid to other states (IL) that is about a $1k less than what we actually paid, and THEN we still will owe IN about $1K. So we now pay about an extra $2K between paying IL more and IN giving credit for less than IL taxes paid.

It is nuts.
Ladyb2
New Member

I live in Illinois but work in Indiana? Indiana taxes are being taken out of my check. What do i do?

Do I pay any taxes to Indiana if my gross income is $16,000?

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