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Level 1
posted Feb 10, 2021 2:12:20 PM

I work in Iowa and live in Illinois. Iowa and Illinois have a reciprocal agreement so my taxes go to Illinois. I got unemployment from Iowa. Do I need to file in Iowa now

I received unemployment from Iowa because that’s the state I work in. So now I’m wondering if I would need to file taxes in Iowa because Iowa paid my unemployment? I had my taxes withheld from this.

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2 Replies
Expert Alumni
Feb 10, 2021 2:34:42 PM

Yes, you will need to file as a Iowa non-resident. The way a reciprocal agreement works is that if you work in Iowa but live in Illinois, you  can request your employer not to withhold income taxes for the State of Iowa. This does not pertain to Iowa Unemployment reporting.

Level 1
Feb 10, 2021 2:40:29 PM

Okay, on my W-2 it shows all my taxes go to Illinois. 

 

So my unemployment tax tax would go to Iowa because Iowa paid my unemployment? I just didn’t know if it happened in error and Illinois should have gotten the tax.

 

i just want to make sure I am doing the right thing. 

 

Would I need to say that I made wages in other state when that question pops up then? Because typically I put no because of the reciprocal agreement.