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tchet1995
New Member

I paid taxes in a reciprocity state how do I get those refunded

I live in Wisconsin but work in Illinois...employer took out Illinois tax...but I should not owe Illinois tax because it is a reciprocity state with Wisconsin.  How do I file this so I get the tax money back from Illinois?
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HelenaC
New Member

I paid taxes in a reciprocity state how do I get those refunded

You will have to file an Illinois nonresident return to recover the erroneous withholdings. On the nonresident return, you'd declare earnings of $0 so you can get a full refund for the taxes your employer withheld. 

You should submit Form IL-W-5-NR  to your employer so they stop taking Illinois income taxes and withhold Wisconsin income taxes and avoid the same problem next year. 

To ensure accurate calculations, we strongly recommend preparing your IL nonresident state return before you prepare your WI resident state return..

The first thing you want to do is make sure you've filled out the Personal Info section correctly:

1.    With your return open, click the first tab, Personal Info.

2.    Continue to the Your Personal Info Summary screen.

3.    Scroll down to the last section, Other State Income, and click Edit.

4.    At the Did you make money in any other states? question, answer Yes (even though you made $0 dollars in that state) and make sure your nonresident state(s) are selected from the drop-down.

5.    Click Continue to return to the Your Personal Info Summary screen.

After you finish your federal return, you'll automatically move to the State Taxes tab, where you'll see your nonresident state(s) listed in addition to your resident state.

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