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Illinois says I owe taxes for 2019, but all my income was earned over seas and I do not plan to return to Illinois

We moved from Illinois to the United Kingdom in August 2018, and were unable to sell our house until 2020, so we rented our house out in 2019, but never lived or worked in Illinois in 2019.  We submitted our state taxes and paid the taxes on the rental income for the house in 2019 when we did our state taxes.  Now Illinois is saying all of our income we made overseas needs to be taxed, plus penalty for not paying all year.

 

We did all the foreign income tax exclusion with the IRS and submitted the Form 673 successfully and owed no federal taxes (We were under the cap)  Everything I read says Illinois will follow federal cap guidelines and not tax you either.

 

Is Illinois wrong to be coming after us for taxes?  They said to submit a letter from our company saying we earned no income in Illinois in 2019.  Will this suffice?

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2 Replies
Anonymous
Not applicable

Illinois says I owe taxes for 2019, but all my income was earned over seas and I do not plan to return to Illinois

you were not a resident for 2019 so all you would owe is the taxes on the rental of the Illinois property. did you indicate you were a non-resident and use a mailing address outside of Illinois? 

follow Illinois instructions. At this point you have nothing to lose.  do send by a method where you get proof of delivery.   include a copy of its letter to you. 

Illinois says I owe taxes for 2019, but all my income was earned over seas and I do not plan to return to Illinois

Correct.  We gave an address outside the USA.  The dumb thing about the IL-1040 is it only asks what state you resided in if not in Illinois, We can only give a 2 letter state code where you live, which we left blank.  Also at the beginning we clearly clicked the box that said non-resident for Illinois.  Apparently the IL dept of revenue took it upon themselves to ignore the non-resident checked box and the blank state boxes, and blank dates present in Illinois, and couldn't be bothered to see what mailing address they used to send me the tax bill.  Thank you for reassuring me that I shouldn't owe this money.  I will work on getting a company letter for us and reinforce that we are not residents of Illinois.  I will let it be known if this works. Thank You

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