I live in indiana ..the company i work for is in indiana... the shop i work is is in illinios...my checks come from indiana..do i need to pay taxes?

[MarilynG · Accepted solution]

If you are an Indiana resident, all your income is taxed in Indiana and you file a Resident return. 

If Illinois tax was taken out of your wages, you will need to file a Non-Resident return to get it refunded to you.

However, Indiana will give you credit for the tax you paid to Illinois.

[BobinCT]

I don't believe Indiana will reduce the tax for Illinois, since they are reciprocal states.  I think IL gives her withholding back and they pay IN the full amount.

[m-mehler75]

but illinois isnt taking no taxes

[MarilynG]

Good! then you only need to file your Indiana Resident return..

[m-mehler75]

thank you