Work in another State Live in another do I have to file for both

[YolandaAlanis]

I work at this job and they have two locations, one in Wisconsin another in Illinois. I live in Wisconsin the whole tax year. I worked at the store in Illinois for a while but now in Wisconsin and they are saying I owe money is there a way I don't have? Am I required to file for Wisconsin? 

[DavidS127 · Accepted solution]

Yes, you are required to file for Wisconsin because you were a full-year resident of that state and had gross income of $11,560 or more (single person, under 65).

Your income earned in Illinois is not taxed by Illinois, because of a "reciprocal agreement" between Wisconsin and Illinois, explained at this website.  If your employer in Illinois withheld Illinois tax from your wages, you can file a nonresident tax return (Form IL-1020 and Schedule NR) with Illinois to claim a refund. 

[YolandaAlanis]

I meant to say Illinois is saying I owe money to their state and I live in Wisconsin. If I file for that forum I will not have to get taxed by Illinois correct?

[DavidS127]

Correct, because when you file the Illinois IL-1040 and Schedule NR you will show no income taxed by Illinois.  The bottom line should show that there is no tax due to Illinois and that all your Illinois tax withheld will be refunded.

Your income earned in Illinois is not taxed by Illinois, because of a "reciprocal agreement" between Wisconsin and Illinois, explained at this website.  If your employer in Illinois withheld Illinois tax from your wages, you can file a nonresident tax return (Form IL-1020 and Schedule NR) with Illinois to claim a refund.