I live in TN and work remotely for a company in IL. The company withheld income tax. Do I need to file an IL state income taxes?

[kerriP]

You may especially if you want a refund of your withheld taxes.  Here is more information.

Illinois

Nonresidents must file if:

1.They earned enough income from Illinois sources to have a Illinois tax liability.  To determine if you have a Tax for         Illinois income determine:

    Illinois Base Income is Greater than Illinois Exemption Allowance:

• $2,175 for each exemption claimed on federal return,
• Additional $2,175 if claimed as a dependent on another person’s return and Illinois base income is $2,100 or less,
• Additional $1,000 per individual for taxpayer (and/or spouse) if 65 or older and
• Additional $1,000 per individual for taxpayer (and/or spouse) if blind. 

2. They want a refund of their Illinois withheld taxes.

Illinois

[PUZZOLLO]

It not an answer.

[PUZZOLLO]

Living and working remotely for company in IL (store chain, they in all USA)do I have to pay IL tax?

[TomD8]

ALL the income of an Illinois resident is taxable by Illinois, regardless of where it was earned.

A Illinois non-resident's earned income (income from work) is not taxable by Illinois if none of the work was actually (physically) performed in Illinois.

Assuming the non-resident taxpayer had no other Illinois-source income (such as rental income from a property located in Illinois), the taxpayer would not be required to file an Illinois tax return.

However, if the non-resident taxpayer's employer mistakenly withheld Illinois taxes, the taxpayer would have to file a non-resident Illinois return, showing zero Illinois income, in order to have those withheld taxes refunded.   But the taxpayer would not be required to do so.

[BillM223]

Generally, you pay taxes to the state where you live and to the state where you physically work (New York is a notable exception).

Since you live and work only in Tennessee, you would owe taxes to Tennessee (but Tennessee doesn't have an income tax, so you are safe).

However, as noted above, if you had taxes withheld by your employer for the state of Illinois, then you have to file a nonresident Illinois return to get your withholding back.

[PUZZOLLO]

What about if W-2 is showing IL wages and IL withholding. Should company correct W-2 showing IL wages 0.00?

[JosephF8]

No, because of the withholding you will need to file a non resident IL return.

As @TomD8 says above:

However, if the non-resident taxpayer's employer mistakenly withheld Illinois taxes, the taxpayer would have to file a non-resident Illinois return, showing zero Illinois income, in order to have those withheld taxes refunded.   But the taxpayer would not be required to do so.

 

[Elashi]

I have a similar problem but I live overseas.
I am not an accountant.  But I came across this link .  Which states, according to my understanding, that even if you do not live in Illinois , you still have to pay taxes according to some rules specified in the link.

Here is a quote from this link:
"As a nonresident you are required to file  Form IL-1040, Individual Income Tax Return, and  Schedule NR if

• you earned enough taxable income from Illinois sources to have a tax liability (i.e., your Illinois base income from Schedule NR is greater than your Illinois exemption allowance on Schedule NR), or
• you want a refund of any Illinois Income Tax withheld in error. If your employer withheld Illinois tax from your pay in error, you must attach Form W-2c, Corrected Wage and Tax Statement, or a letter from your employer, on company letterhead, to your Form IL-1040 to verify that Illinois tax was withheld in error."

Please advise.

[TomD8]

@Elashi -- What is your connection to Illinois?  Is your main or primary home in Illinois?  Did you move from Illinois to a foreign country during 2019?  Did you physically work in Illinois during 2019?  Did you receive a W-2 showing Illinois withholding?  What exactly is your question?

[Elashi]

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@TomD8 wrote:

@Elashi -- What is your connection to Illinois?  Is your main or primary home in Illinois?  Did you move from Illinois to a foreign country during 2019?  Did you physically work in Illinois during 2019?  Did you receive a W-2 showing Illinois withholding?  What exactly is your question?

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I received a W-2 showing in field 15 : IL and in field 16 "State wadges, tips etc" my salary.