Double taxes in illinois?

Forum|Forum|2 years ago
March 27, 2024
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Hello, I am considering moving from NYC to Chicago, and I read that there may be a double taxation issue. I work for an organization that does not have any physical locations in Chicago/Illinois, but I would be living full time in Chicago. I intend to travel back to NYC maybe 2 times per month (total 6 days/month) to work from NYC, and the rest of the time work remotely from Chicago. I understand that NYS will tax me as a NY resident since my work office is still in NYC, but my question is whether IL will also tax my income? Let me know if you need more information to answer this question. Thank you.

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Best answer by DianeW777

Yes, Illinois (IL) will still tax your income because your resident state wants the tax dollars for all worldwide income during your residency. The good new is they will give you a credit for taxes paid to another state on the same income. Below is an explanation of how it works.

The credit for taxes paid to another state on the same income is used on your resident state because they do not want you to pay taxes twice on the same income.

The credit for tax paid to another state on the same income will be the lesser of:

the tax liability actually charged by the nonresident state, OR
the tax liability that would have been charged by your resident state (this means you could pay a higher amount if the New York (NY) state tax is higher than IL.

DianeW777Answer

The credit for taxes paid to another state on the same income is used on your resident state because they do not want you to pay taxes twice on the same income.

The credit for tax paid to another state on the same income will be the lesser of:

the tax liability actually charged by the nonresident state, OR
the tax liability that would have been charged by your resident state (this means you could pay a higher amount if the New York (NY) state tax is higher than IL.

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