I'm not getting my IL-NR state taxes credited when I complete my resident IA taxes. I did IL first, but I get to the end and I still owe IL. Is there a bug in the system?

[wingyfresh]

The program states that I should fill out my non-resident return first and then it would give me credit after I do my Iowa return, as Iowa and Illinois have a reciprocal agreement. Should I just enter $0 for IL income? I'm losing my mind here.

[SteamTrain]

If you were an IA resident all year, then yes, $0 of IL income on the IL NR tax return.

You get all of the IL withholding refunded, and NO credit on the IA tax return since IA expects you to get all of the IL withholding refunded to you.

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You need to file the proper form with the IL employer to get IL withholding stopped.  And IF they can start IA withholding, that must be started.  But not all IL employers are set up to withhold IA taxes...if they aren't then you'd need to start making quarterly estimated taxes to IA yourself, to avoid IA penalties for not paying during the year.

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Once IL withholding is stopped (for the entire tax year) and all income is reported on your W-2  as only IA income, then you will no longer need to file IL nonresident tax returns.

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To stop IL withholding, the IL-W-5-NR is filled out and given to your IL employer.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/state-taxes/states-reciprocal-agreements...