Illinois Wisconsin Reciprocity

[Brian527]

I live in Illinois but work in wisconsin. My W-2 says $4671 was withheld state income tax block 17. I'm trying to file on turbo tax and it's telling me I owe Illinois $4303. I thought since there was reciprocity I would only have to pay Illinois. Please explain. Am I supposed to put 0 in the Wisconsin non resident filing? If so how do I get the withheld money to count for Illinois? Please help. 

[MindyB]

It sounds like the state is in Box 15 is Wisconsin for the $4,671 withheld in Box 17. If that is the case, you should file W-220 with your employer so they stop withholding Wisconsin tax, and instead only withhold Illinois tax. 

The withheld money from Wisconsin can't be applied to Illinois.  In order to get a refund of Wisconsin tax, file a non-resident tax return, reporting zero income as Wisconsin sourced, and request a refund.  For Illinois, file a resident return and report the wages as if you earned them in Illinois.

Here is more information on reciprocal states: What is a state reciprocal agreement?

[Brian527]

Ok, I think that worked. It's saying I'll get back the entire $4672 from WI. I guess I can just pay Illinois manually then? It's that how it works? Just want some clarity. Thank you. 

[Mike9241]

I live in Illinois but work in wisconsin. My W-2 says $4671 was withheld state income tax block 17. I'm trying to file on turbo tax and it's telling me I owe Illinois $4303. I thought since there was reciprocity I would only have to pay Illinois. Please explain. Am I supposed to put 0 in the Wisconsin non resident filing? If so how do I get the withheld money to count for Illinois? Please help. 

there is reciprocity which means for wages you only pay income taxes in your resident state.  but what state code is in box 15? If it is WI, your employer withheld for the wrong state. you'll need to file a WI nonresident return to get those taxes back and you will owe for Illinois. then in TurboTax you have to check you had income in other states. in the WI 1NR make sure column B Wisconsin income shows zero for wages

if the state code is IL, you should not be having an issue unless you entered something incorrectly.

• TurboTax Basic Windows

[Mike9241]

I live in Illinois but work in wisconsin. My W-2 says $4671 was withheld state income tax block 17. I'm trying to file on turbo tax and it's telling me I owe Illinois $4303. I thought since there was reciprocity I would only have to pay Illinois. Please explain. Am I supposed to put 0 in the Wisconsin non resident filing? If so how do I get the withheld money to count for Illinois? Please help. 

there is reciprocity which means for wages you only pay income taxes in your resident state.  but what state code is in box 15? If it is WI, your employer withheld for the wrong state. you'll need to file a WI nonresident return to get those taxes back and you will owe for Illinois. then in TurboTax you have to check you had income in other states. in the WI 1NR make sure column B Wisconsin income shows zero for wages

if the state code is IL, you should not be having an issue unless you entered something incorrectly.

[MindyB]

@Brian527 Yes, that is correct. You will pay the Illinois balance separately, and can expect a full refund from Wisconsin.