No, you don't have to file an IL state income tax return. You are a remote worker. Remote workers do not have to file nonresident state tax returns unless they physically travel to another state and perform work while they are there. Please see the additional information below.
Generally, you’ll need to file a nonresident state return if you made money from sources in a state you don’t live in.
Some examples are:
- Wages or income you earned while working in that state
- Out-of-state rental income, gambling winnings, or profits from property sales
- S Corporation or partnership income
- Beneficiary income from a trust or estate
- For active duty military: non-military income earned outside your state of legal residence
- If your employer withheld taxes for the wrong state
Your won't need to file a nonresident return if:
- You only have interest income from an out-of-state bank account
- The other state doesn't collect income tax (Alaska, Florida, Nevada, South Dakota, Texas, Tennessee, Washington, or Wyoming)
Note: Even if you don't receive a tax form for the $600 that you earned from the Washington company, you'll still need to enter it on your income tax return. To enter:
- Open your return and type Schedule C in the Search box.
- Select the Jump to link. This will take you to where you can enter any cash, personal checks, credit card payments, or cryptocurrency (Form 1099-K) related to your self-employment.
- You may first be asked some general questions about your business.
- After you answer them, you’ll be taken to the Let's enter the income for your work screen. Select Other self-employed income and provide all necessary information.
If you're self-employed, you'll have to report the income Schedule C. You're able to deduct qualified business expenses.
[Edited 02-09-2023}3:22 pm PST]
@TaxHelping
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