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February 3, 2021
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unemployeement

  • February 3, 2021
  • 1 reply
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I work and had to draw unemployment in the state of Illinois, however I live in Iowa and have to pay Iowa state tax.  I paid out of my unemployment 10% federal and 5% state (Illinois).  How do I file for the state to show in Iowa?

    Best answer by MaryK4

    You will have to file a nonresident Illinois state tax return to report the income to Illinois.  When you file the Iowa tax return, as a resident you will report the income but then claim a credit for the tax paid to Illinois.  Unlike the Reciprocity agreement for the income wages, the unemployment does have to be filed with Illinois.

    1 reply

    MaryK4
    MaryK4Answer
    Alumni - Intuit
    February 3, 2021

    You will have to file a nonresident Illinois state tax return to report the income to Illinois.  When you file the Iowa tax return, as a resident you will report the income but then claim a credit for the tax paid to Illinois.  Unlike the Reciprocity agreement for the income wages, the unemployment does have to be filed with Illinois.

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