Live in WI, work for company in IL

[bdplayer81]

I started a new position in December of 2022 working for a company in IL.  At the time I was hired, they did not have a WI employer ID so they didn't have a way to withhold for my WI income taxes.  They also did not withhold any taxes for IL for the month of December.  I received my W2 and in the state boxes, the only income they listed was $9.27 for the state of IL (which is the amount for my group life insurance).  I feel like I need to get a corrected W2 showing my full income in the state of IL, am I correct? Would I need to file an IL return despite being a WI resident or is there a way to file my income for WI? 

[DavidD66]

You don't need a corrected W-2.  You need to file a non-resident Illinois return and report 100% of the income you received from working in Illinois.  You will receive a credit from on your Wisconsin return for Illinois tax.  You should prepare your non-resident Illinois tax return first, and then your Wisconsin resident return.  

[bdplayer81]

Thanks, I appreciate the answer! Just to clarify on the W2, there was only $9.27 reported as income for IL. When I complete my return, should I just enter the correct income amount?

[SteamTrain]

@DavidD66   @bdplayer81 

Be careful here!    No....you do not report all of your income as IL income !

IL and WI have a reciprocal tax agreement, whereby a resident of WI, who is working in IL should have ALL of your IL wages are to be reported as WI income.   You get no WI credit for taxes paid to IL.

(not sure about what to do with the $9.27 though). 

The employer has done it properly if box 1 of the W-2 is also listed for WI in boxes 15,16,17.  Or it may also work OK if they didn't have a WI state line at all, as long as all the box 1 $$$ of income ends up being included in the WI state tax return.   

You will owe WI taxes on all that income, and if the IL employer cannot withhold WI taxes for you, you will need to start paying WI quarterly tax estimates....to avoid underpayment penalties at the end of the year.

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Like I said though, if boxes 15,16,17 have an IL state line for $9.27 of IL wages, I'm not sure what might be needed.  Personally, I'd just ignore the IL nonresident tax return for that, but am a bit unsure.

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@TomD8   @xmasbaby0     

Y'all are conversant on IL.  Ignore filing non-resident IL in this situation?

[bdplayer81]

My employer has added the ability to withhold for WI as of Jan 1 so this issue only applies to one month from December.

My W2 shows: Box 15 - IL, Box 16 - $9.27, Box 17 is empty.  

[xmasbaby0]

I will go out on a limb and say forget about filing a non-resident IL return for less than $10.

[bdplayer81]

Yeah, I wasn't going to deal with it for the $9.27.  

My main question, then, is when I file my return on Turbotax, since I'm not entering my income for WI on the W-2 since it isn't there, what field should I be entering it in so it's included in my WI return? I see there's a field for "WI Other Taxable Income". Should I just enter the amount in box 1 in that field? 

[SteamTrain]

Are you sure it's not being included in WI income already after entering the W-2 as-is?

From what I see, the WI Form 1 (line 1) starts with Federal AGI, which includes that  W-2.

The only other thing you might have to check is your actual WI Form 1 to see if all your W-2 box 1 wages (from all W-2 forms if you had more W-2 employers last year) are included on a line between lines 3 and 4 of the WI-Form 1.

IF your total W-2 wages are not shown ion that intermediate line (between 3 and 4), then there is a way to get them there, but I don't want to poke at that option if it isn't necessary.

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Wish I had the WI software so I could check..but i don't.