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Level 3
posted Feb 19, 2023 9:10:38 PM

Reciprocal State Agreements Illinois & Iowa

I received form 1099-NEC instead of a W-2 for a part-time job in Iowa but live in Illinois.

 

Do I need to file Iowa state income tax even though Illinois and Iowa have a reciprocal agreement?

 

TT says no if receiving a W-2 but since a 1099-NEC was issued, it was not clear to me if I would check Iowa as a state for receiving compensation.

0 2 340
2 Replies
Level 15
Feb 19, 2023 9:17:24 PM

The reciprocal agreement applies only to wages reported on a W-2. Since you were treated as a contractor, not an employee, and the payment you received was reported on a 1099-NEC, the reciprocal agreement does not apply to that income and you have to file an Iowa nonresident tax return.

 

Level 3
Feb 22, 2023 7:43:36 PM

Thank you for the prompt response and confirmation.

 

Kind Regards.