Question

Live and work in AL for an IL company

Forum|Forum|3 years ago
March 15, 2023
1 reply
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My husband works for an IL based company remotely full time from our residence in AL. He travels to IL 4-5 times per year for a few days of work, less than15 days per year. His employer has our address as AL, do we need to file an IL return?

T

TomD8

Employee

The portion of your husband's income that he earns from work actually (physically) performed in Illinois IS taxable by Illinois. He must file a non-resident Illinois return in order to report that income.

He entire income, including that from Illinois, is taxable by his home state of Alabama, but he'll be able to claim a credit on his AL return for the taxes paid to IL, so in effect he won't be double-taxed.

In TurboTax, be sure to complete the non-resident state tax return first, before the home state return, so that the program can correctly calculate and apply the credit.

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

T

TomK2023

Probably;. As Champ TomD8 stated above, be sure to complete your IL Schedule NR first, A link to the form is below.

You must file Form IL-1040 and Schedule NR if

you earned enough taxable income from Illinois sources to have a tax liability ( i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50), or
you want a refund of any Illinois Income Tax withheld in error. You must attach a letter of explanation from your employer.

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