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fwhassler1
New Member

state tax

  • hello, I live in wisconsin and work in illinois. they have a reciprocal agreement. this year for some reason they charged me illinois taxes and not wisconsin. this has never happened before. now it is saying I owe $2,300 to wisconsin. this cannot be correct because I paid $2,700 in illinois. how can I fix this? i have not yet finished filling so i can hopefully fix this.  thank you for any help
3 Replies
DavidD66
Expert Alumni

state tax

Reciprocity agreements mean that two states allow its residents to only pay tax on where they live—instead of where they work.  You should have filled out a  Form W-220 and submitted it to your employer.  You won't have to pay Illinois tax as a result of the reciiprocity agreement, but you will have to file a non-resident Illinois tax return in order to receive a refund of the Illinois tax withheld.  That is in addition to your Wisconsin resident tax return.  In the Illinois non-resident return, you will indicate that none of your income is taxable by Illinois, and you will receive a refund of all the tax withheld.

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fwhassler1
New Member

state tax

@DavidD66 I really appreciate your help. I've worked for this company for years and this just happened. in the past I always paid wisconsin taxes. so do I need to file my taxes as is and pay the wiscosnin tax and then after I file everything file out the other form to get my illinois refund?

TomD8
Level 15

state tax

@fwhassler1 Actually, since you work in Illinois, the form you must submit to your employer is Illinois Form IL-W-5-NR, which you can download here:  

https://www2.illinois.gov/rev/forms/withholding/Documents/currentyear/il-w-5-nr.pdf

 

You must submit a non-resident tax return to IL, allocating zero income to IL, in order to receive a refund of the incorrectly withheld IL taxes.

 

And you must submit a resident tax return to your home state of WI.  All your income is taxable by WI.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

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