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Level 1
June 1, 2019
Solved

Reciprocal States

  • June 1, 2019
  • 1 reply
  • 2 views
My husband earned income in Wisconsin while living in Illinois.  The software is prompting me to enter income taxed by WI and tax paid to WI, but the note at the bottom says that this should be non-wage income.  Does that mean I leave these blank if his income from WI was his paychecks?
Best answer by ChristinaS

Do you need to be filing the Wisconsin return? In general, if you worked in a reciprocal state, you don't file a return there.

In your situation, did your husband have WI tax withheld in error? Did you have non-wage income from Wisconsin, such as rental property or a small business? Are you a resident of Wisconsin?

If the answer to all of these questions in No, delete the Wisconsin return- there's no reason to file one, thanks to reciprocity.

Go to the Personal Info tab and remove Wisconsin as Other State. Delete it in the State Tax tab.

(Per your question- Yes, you would leave these blank... but I'm hoping there's a much easier solution)

1 reply

Level 10
June 1, 2019

Do you need to be filing the Wisconsin return? In general, if you worked in a reciprocal state, you don't file a return there.

In your situation, did your husband have WI tax withheld in error? Did you have non-wage income from Wisconsin, such as rental property or a small business? Are you a resident of Wisconsin?

If the answer to all of these questions in No, delete the Wisconsin return- there's no reason to file one, thanks to reciprocity.

Go to the Personal Info tab and remove Wisconsin as Other State. Delete it in the State Tax tab.

(Per your question- Yes, you would leave these blank... but I'm hoping there's a much easier solution)