Live in Iowa. Employed by Deere and Company with Offices in both Illinois and Iowa. Do I file in Iowa and Illinois, or just Iowa?

[RandyOnly]

I had always thought that Iowa and Illinois had some sort of agreement about taxing, especially along the border. Since I have lived in Iowa (9 years), I have only filed taxes with Iowa. Should I be filing in Illinois, too?

[LeeM · Accepted solution]

No, you should not. Unless your employer withheld Illinois taxes from your paycheck and you are due a refund. In the Personal Information section when you walk through the questions, you should select "No, you did not work in another state".

Iowa and Illinois have a reciprocal agreement for individual income tax purposes. Any wages or salary made by an Iowa resident working in Illinois is taxable only to Iowa and not to Illinois. 

You should also make sure your employer has a Illinois form IL-W-5-NR “Employee's Statement of Nonresidence in Illinois” to prevent any mix-ups.

For more information, you can see the webpage below:

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