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Should I file an income tax return if I live in another state but worked in Illinois?

As a nonresident you are required to file  Form IL-1040, Individual Income Tax Return, and  Schedule NR if

  • you earned enough taxable income from Illinois sources to have a tax liability (i.e., your Illinois base income from Schedule NR is greater than your Illinois exemption allowance on Schedule NR), or
  • you want a refund of any Illinois Income Tax withheld in error. If your employer withheld Illinois tax from your pay in error, you must attach a letter from your employer, on company letterhead, to your Form IL-1040 to verify that Illinois tax was withheld in error.

If you live in Iowa, Kentucky, Michigan or Wisconsin, you must file Form IL-1040 and Schedule NR if

  • you received income in Illinois from sources other than wages, salaries, tips, and commissions, or
  • you want a refund of any Illinois Income Tax withheld in error. If your employer withheld Illinois tax from your pay in error, you must attach Form W-2c, Corrected Wage and Tax Statement, or a letter from your employer, on company letterhead, to your Form IL-1040 to verify that Illinois tax was withheld in error.

If you received wages, salaries, tips, and commissions from Illinois employers, you are not required to pay Illinois Income Tax on this income. This is based on reciprocal agreements between Illinois and these states. If your employer is withholding Illinois tax, you should fill out a Form IL-W-5-NR, Employee's Statement of Nonresidence in Illinois, and give it to your employer so they will stop the withholding. You will need to file an Illinois return to get any withholding refunded to you.

 

 

 

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