how to file a reciprocal tax return in WI

[yykathy_QA]

I live in IL and work in WI which has a reciprocal agreement with IL , but for the 1st pay check, WI tax was withheld. how do I file WI tax return to get money back? Should I report all my income to IL and zero to WI? Thanks

[DMarkM1]

Yes.  File resident all year with IL and include all income there.  In the "My Info" section using the "Other State Income" topic indicate you earned income in WI.  This will generate the WI nonresident return. 

After entering the form W2 in the federal "Wages and Income" section showing the WI withholding, you should complete the WI state return.  In the WI state return allocate zero to WI.   You will not claim a credit on your IL return since you are getting the WI taxes refunded.  

[yykathy_QA]

thank you very much for your quick answer! That's what I though I should file. However when transferred Fed tax to States, TT even allocated the interest income to WI. I was confused. Now I need to manually correct those lines in WI return.

[DMarkM1]

Yes, in the WI state interview you will need to be sure all the income is "NON WI" assuming that is the case in your situation. 

[yykathy_QA]

That's kind another confusing point when answer TT question. my employer is in WI.  But I need to say non-WI income. They withheld WI tax before I filed my non-resident no withholding with WI.

Thank you again for your help!

[yykathy_QA]

Can you kindly let me know how to delete investment income for WI return in Turbotax? It was transferred to WI state automatically, while I can see in Form format, but it does not let me change to zero in WI 1 NPR. Thank you very much for your help!

[AmyC]

Investment income is a bit broad so I will break it down.

For Capital Gains and Losses - select that option under income that WI handles differently and subtract out the gain.

For everything else - continue through the WI nonresident return and enter the Non WI Income in the boxes.