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I Live in Wisconsin but I work in Illinois, I’m doing my taxes and I’m getting a refund from Illinois but I owe almost 3000 to Wisconsin state taxes, why is that?

Because I live in Wisconsin and I work in Illinois I have to file to state returns why do I owe so much money to the state I live in but getting a refund from the state I work in
2 Replies

I Live in Wisconsin but I work in Illinois, I’m doing my taxes and I’m getting a refund from Illinois but I owe almost 3000 to Wisconsin state taxes, why is that?

IL and WI have a reciprocal agreement.  Your employer should be withholding WI taxes only.
DanielV01
Expert Alumni

I Live in Wisconsin but I work in Illinois, I’m doing my taxes and I’m getting a refund from Illinois but I owe almost 3000 to Wisconsin state taxes, why is that?

Wisconsin and Illinois have a reciprocal agreement:  if you live in one state and work in the other, you should have your taxes withheld for the state where you live, not where you work.  When this is done, you only have to file a return where you live and not where you work.  

However, your company did not withhold Wisconsin taxes but rather Illinois taxes.  So you have paid $0 to Wisconsin and owe the full amount of tax.  You get a full refund from Illinois, but you will need to use that to pay what you owe Wisconsin.

Ask your employer for the form required so that they withhold Wisconsin tax instead of Illinois tax.  This will help things for your return next year.

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