IL State taxes living in Spain

[Kahtan]

Hello,

I have lived, worked and paid taxes in Illinois for many years. Last year, however, I moved to Spain and worked remotely for my IL based employer. My employer kept withholding state taxes for IL as usual.

My question is, when I file do I need to pay IL taxes? how do they know that I am really living in Spain?

Thanks a ton

[Critter-3]

• a part-year resident , you must file Form IL-1040 and Schedule NR, Nonresident and Part-Year Resident Computation of Illinois Tax, if
  • you earned income from any source while you were a resident,
  • you earned income from Illinois sources while you were not a resident, or
  • you want a refund of any Illinois Income Tax withheld.

https://www2.illinois.gov/rev/individuals/filingrequirements/Pages/default.aspx

[Kahtan]

I lived all of 2021 in Spain. I did not spend a single day in IL

[Critter-3 · Accepted solution]

Read the rules in the link :  

a nonresident, you must file Form IL-1040 and Schedule NR if

• you earned enough taxable income from Illinois sources to have a tax liability ( i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50), or
• you want a refund of any Illinois Income Tax withheld in error. You must attach a letter of explanation from your employer.

[Hal_Al]

See: https://www.greenbacktaxservices.com/blog/tax-for-expats-state-taxation/

For other reading this, note, in particular: 

"There are, however, four states with less clear rules. These are called “sticky” states because the requirements for filing a state tax return as an expat can be complicated:

• California
• South Carolina
• New Mexico
• Virginia