Voluntary Separation payments after leaving state (IL)

I lived in IL till Sept 2020, then left my job and moved to WA, where there is no income tax. Still getting severance payments from IL employer. Do I pay IL tax on that?

posted

Yes. Severance pay is considered to be money you receive for work you did during the time you were employed. Since your severance was paid by an Illinois employer, it is considered Il "source income."

Your employer should be withholding state income tax on your payments.

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