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Both my wife and I work in Illinois but live in Wisconsin. Box 15 on my W-2 is WI but my wife's is IL. This appears to throw off our taxes. How do we report this on taxes.

Forum|Forum|7 years ago
June 1, 2019
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Best answer by RBBrittain

You will probably need to file with both states. WI, as your resident state, is entitled to tax both paychecks. Since IL & WI have a reciprocity agreement, you will not owe tax to IL; however, since your wife's W-2 apparently has IL tax withheld, you will have to file an IL tax return to get a refund.

Your wife needs to file a Form IL-W-5-NR with her employer to stop her IL withholding as a WI resident. The form is available at http://www.revenue.state.il.us/TaxForms/Withholding/IL-W-5-NR.pdf .

R

RBBrittainAnswer

Employee

You will probably need to file with both states. WI, as your resident state, is entitled to tax both paychecks. Since IL & WI have a reciprocity agreement, you will not owe tax to IL; however, since your wife's W-2 apparently has IL tax withheld, you will have to file an IL tax return to get a refund.

Your wife needs to file a Form IL-W-5-NR with her employer to stop her IL withholding as a WI resident. The form is available at http://www.revenue.state.il.us/TaxForms/Withholding/IL-W-5-NR.pdf .

J

jestersfester

You do need to file both IL and WI tax returns.

When asked "how much money did you made in IL" on the IL tax form questionnaire you have to put zero. This is very confusing and shame on Turbo Tax for not making it appear correctly. It should be worded "how much money you made in IL as an IL resident"

Since you are a WI resident under the reciprocal agreement (schedule 121 <a rel="nofollow" target="_blank" href="https://www.revenue.wi.gov/DOR%20Publications/pb121.pdf">https://www.revenue.wi.gov/DOR%20Publications/pb121.pdf</a> ) you do not have to pay IL income tax.

all of your taxes will be refunded and you will owe when filing your WI taxes. You basically have to act as your own escrow account this way however it is the easiest.

The other way involves putting on your W4 that you are tax exempt in IL and then you have to pay quarterly in WI but this way it is less of a lump sum.