If I was employed in Iowa but a resident in Illinois, would that result in owing the state? I owe more than expected for both state taxes (IL & IA) I worked in IL too.

[MarilynG · Accepted solution]

You could owe tax if either your Iowa or Illinois employers did not withhold enough tax from your pay.  This could be due to the change in payroll Withholding Tables last year that probably gave you a few extra dollars on your paychecks.  However, this resulted in less tax paid total for the year, so that you are noticing that difference now. 

Since Illinois and Iowa are 'reciprocal' states, you only need to file an Illinois Resident return.  Report all your income and any taxes paid on your income on your Illinois tax return.

Click on STATE at the left-side menu to Delete Iowa from your return and go through the Illinois state interview again. 

Here's more info:

https://tax.iowa.gov/iowa-illinois-reciprocal-agreement

[mdufault1022]

Thank you very much!