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Why did my state refund change from last year?

Forum|Forum|7 years ago
June 1, 2019
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Full time all year. Live in Wisconsin. Work in Illinois. Employer takes taxes out for Wisconsin. This year turbo tax says I owe Illinois. Last year I did not. Why? I moved within same county in Wisconsin. Do you think that triggered the system to think I owed Illinois?

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Best answer by TomD8

Wisconsin and Illinois have tax reciprocity. If you live in one and work in the other, you only have to pay income tax in your state of residence. Note that this applies to W-2 wages only.

Therefore, if all your income from Illinois was wages, you do not have to file an Illinois return. For tax purposes, your earnings are all Wisconsin income and taxable by Wisconsin.

If this is your situation, check the Personal Info section of TurboTax and make sure you answered No in the Other State Income section.

T

TomD8Answer

Employee

Wisconsin and Illinois have tax reciprocity. If you live in one and work in the other, you only have to pay income tax in your state of residence. Note that this applies to W-2 wages only.

Therefore, if all your income from Illinois was wages, you do not have to file an Illinois return. For tax purposes, your earnings are all Wisconsin income and taxable by Wisconsin.

If this is your situation, check the Personal Info section of TurboTax and make sure you answered No in the Other State Income section.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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continue2-Author

I answered that I earned money in another state, as I did last year. I thought that the system would determine that I did not have to pay Illinois taxes, as it did last year.