I moved from NY to IL in June. I worked for a NY company all year. I filed in both states but still owe in IL. Is my allocation wrong? Why would I still owe in IL?

[acreigh2]

This year I moved from NY to IL in June. For the entire year I worked for a company in NY state where I telecommuted and paid NY state income on every paycheck. However after filling out the "Credit for taxes paid to another state" I was given a credit that does not equal the full amount owed to IL, so I still owe IL taxes despite paying NY taxes for the entire year. Seems like I am being double taxed. How should I allocate the Illinois and non-Illinois amount?

[ErnieS0]

New York tax rates are generally higher than Illinois’ flat 4.95% rate so Illinois should give you credit for the full amount of your New York earnings.

Because you moved to IL in June, you will have to manually calculate your New York income and New York tax liability on the screen Illinois base income taxed by Other State.

You can use the ratio from your pay stubs or use months or days and multiply that percentage by your total New York tax liability on Form IT-203.

If you permanently relocated to Illinois and worked remotely, you may not have to pay any New York tax. Speak with your employer about reclassifying you as an Illinois worker.