Illinois resident, Michigan W2, Iowa 1099-R

Forum|Forum|2 years ago
March 27, 2024
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I have two questions

1. I am resident of Illinois and did a remote job for a company in Michigan. W2 has Illinois state ID of employer and employer also withheld Illinois state taxes. Do I have to file Michigan state tax, in addition to Illinois state tax.

2. I also received a from 1099-R for distributions of pension (small amount) from a company based in Iowa. 1099-R has the amount in item 16 (state distribution). Do I have to file state tax return in Iowa for this income?

Thanks a lot.

Best answer by KrisD15

Remote workers are not taxed in Michigan, (additionally Illinois and Michigan have a reciprocal agreement), so you would only report that income on your Illinois resident return.

Retirement income is taxed in the sate in which you live, so also Illinois income.

Although the 1099-R has Iowa indicated, I assume no state tax for Iowa was withheld, otherwise you might need to file to get that state tax refunded.

KrisD15Answer

Remote workers are not taxed in Michigan, (additionally Illinois and Michigan have a reciprocal agreement), so you would only report that income on your Illinois resident return.

Retirement income is taxed in the sate in which you live, so also Illinois income.

Although the 1099-R has Iowa indicated, I assume no state tax for Iowa was withheld, otherwise you might need to file to get that state tax refunded.

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