IA / IL Reciprocity Missing

Forum|Forum|1 year ago
April 2, 2025
1 reply
0 views

Turbotax Premium, I think wrongly, tries to make you file an IL return when you live in IA and work in IL. It reads:

"This money gets taxed twice, by both Iowa and the other state.
But don't worry if you see double-taxed income as you go through your Iowa return. Later on we'll help you get a credit that offsets paying double taxes."

Everything I've seen suggests you simply file your IA return like normal and file the non-resident form with your employer. No IL return should be needed, right?

Best answer by Mike9241

you would only need to file an Illinois return if you had non-wage income/loss from Illinois activities, such as a rental OR if your W-2 reflects Illinois withholding. Line 15 would say IL. Assuming you only had IA wages and IA w/h, you have to fib to Turbotax and say you earned income in no other state.

Mike9241Answer

TomD8

Employee

If you live in IA and work in IL, file Illinois Form IL-W-5-NR with your employer so as to preclude withholding of Illinois income tax. Here's a link to that form:

https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/withholding/documents/currentyear/il-w-5-nr.pdf

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