Remote worked in WA, W2 in IL

[yyashop]

My daughter is a student that had a co-op in 2021.  She is a resident of WA state(no state income tax), but a full time student in IL.  Due to COVID, her co-op was remote, and she stayed in WA during the entire time of her co-op.

However, her W2 from her co-op employer lists her IL campus address, and IL state taxes were withheld.

Turbotax tells her to only report income earned in IL, which she did for her summer internship (separate from the co-op) that was in IL.  The question is, does she report her co-op income as earned in IL, or WA?

Thank you for any help!

[ErnieS0]

Your daughter’s co-op income is not taxable to Illinois if she worked from Washington.

Illinois says: “employee compensation (i.e., wages and salaries, bonus, overtime, and commission pay) paid in Illinois usually reported to a payee on Form W-2.”

If the co-op withheld Illinois tax, you will get that back as part of the state refund. Illinois allows you to adjust wages on the nonresident return to show that income was not earned in Illinois.

In the Illinois section, TurboTax will ask how much W-2 income was earned while working in Illinois on the screen Tell us about your Illinois income.

Change that to exclude the co-op income.

[yyashop]

Many thanks ErnieS0.  I will exclude the co-op income.  I was worried since her W2 lists her campus address, with no place to say that she was working from WA other than COVID and our say-so.

Thanks again.