Wife Moved from WI to IL

[echristo]

My wife moved from WI to IL in June 2020. How do we account for this correctly in IL and WI Filings? The questions in Turbo Tax are written from single person perspective and do not account for one person moving. Federal taxes I am filing Married Filing Jointly. 

Thanks,

Eric

[DanielV01]

You have options.  Wisconsin does allow you to file as Married Filing Separately, which would allow you to file as a full-year Wisconsin resident and your wife as a part-year Wisconsin resident and a part-year Illinois resident.  Another option would be to "maintain" Wisconsin residency for the full year (jointly).  Because Illinois has a reciprocal agreement with Wisconsin, she would file an Illinois return with $0 income to have the Illinois taxes refunded (if any), but then Wisconsin would tax all of her income on the Wisconsin return.  Choose the method that results in lower tax overall.

[echristo]

Thanks for the reply Daniel! I realized I was not clear in my situation. I lived in IL all 2020. She moved from WI to IL in June. Do we have options to file jointly or separate if we filed federal jointly? Since Illinois has a reciprocal agreement with Wisconsin, would she file a WI return with $0 income to have the WI taxes refunded? And then IL would tax all of her income on the IL return?  

[DanielV01]

If that is your situation, that is also an option.  Illinois also allows you to file Married Filing Joint or Married Filing Separately in the state.  Again, use the option that results in lower overall tax.