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trippler57
New Member

The company i work for is in Illinois, I work out of my home and live in Florida. there is nothing on my w-2 showing any state income or taxes paid.

do I still pay Illinois state taxes or Florida state tax (which there is no state tax) ?
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Accepted Solutions
LeeM
New Member

The company i work for is in Illinois, I work out of my home and live in Florida. there is nothing on my w-2 showing any state income or taxes paid.

If you work from your home and it is considered your resident state and the income is earned in that state, then you would only owe income tax to that state.

No, in your case, you do not have to pay Illinois state taxes because you are a Florida resident with Florida sourced income (meaning your income was earned in Florida).

You can potentially deduct your home office related expenses as job expenses, if you itemized deductions by entering them using the directions in the FAQ below:

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5 Replies
LeeM
New Member

The company i work for is in Illinois, I work out of my home and live in Florida. there is nothing on my w-2 showing any state income or taxes paid.

If you work from your home and it is considered your resident state and the income is earned in that state, then you would only owe income tax to that state.

No, in your case, you do not have to pay Illinois state taxes because you are a Florida resident with Florida sourced income (meaning your income was earned in Florida).

You can potentially deduct your home office related expenses as job expenses, if you itemized deductions by entering them using the directions in the FAQ below:

2017baja
New Member

The company i work for is in Illinois, I work out of my home and live in Florida. there is nothing on my w-2 showing any state income or taxes paid.

Neither of these responses are currently completely accurate.  There is a wage threshold for Illinois.  If you meet that threshold and your employer is in Illinois, you will owe Illinois taxes regardless of where you live.  Your company has to have your work location listed as your state of residency (a Satellite worker) to ensure your exempt from Illinois taxes, with the exception of the above wage exception.  Also, Illinois base your taxes on Residency "AND" employer location.

 

How do I know this, because I just went through this with the Illinois IRS.  If your in a No-Income tax state such as Arizona, Texas or Tennessee, you will get some of the money back.  If you manage to not have any taxes withheld and do not file a state return with Illinois, good luck.

TomD8
Level 15

The company i work for is in Illinois, I work out of my home and live in Florida. there is nothing on my w-2 showing any state income or taxes paid.

@2017baja wrote:  "If you meet that threshold and your employer is in Illinois, you will owe Illinois taxes regardless of where you live." 

 

Not true.  For Illinois income taxes (as with other states), the issue is not where you live, it's where you actually work.

 

The work income of a non-resident of Illinois who never physically works within Illinois is not subject to Illinois income tax.  See Section 304 (a)(2) (B) of the Illinois Income Tax Act:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=003500050HArt%2E+3&ActID=577&ChapterID=8&Seq...

 

Otherwise, every nationwide employee of a corporation based in Chicago, such as Boeing or United Airlines, would be paying taxes to Illinois.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
2017baja
New Member

The company i work for is in Illinois, I work out of my home and live in Florida. there is nothing on my w-2 showing any state income or taxes paid.

The section you reference state it's applicable to businesses, not individuals. 

 

I had this belief as well, but on the Illinois page it states differently and when I was audited, this was not applicable.  Illinois is the only state that has taxed me while working outside of the state.  I've challenged them because I am not a resident and they always refer back to the information listed in their documents, which are on their page.  

The only way around this as I stated, the company has to state your residency as your work location.  This is how all of the major companies keep their employees from paying taxes to Illinois.  Either way, if you can keep from paying, more power to you.  I've been audited over 11 times and the state has held firm to my previous statement.  (Note: and I've never paid any extra or been penalize)  The solution was to state my resident as the business work location.

TomD8
Level 15

The company i work for is in Illinois, I work out of my home and live in Florida. there is nothing on my w-2 showing any state income or taxes paid.

"The section you reference state it's applicable to businesses, not individuals."

 

No.  Section 304(a)(2)(B) refers specifically to "the individual's" compensation.

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