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December 29, 2023
Question

Seeking Help with Tax Return Correction in Illinois

  • December 29, 2023
  • 1 reply
  • 0 views

Hi TurboTax Community,

 

I recently encountered an issue with my tax return, and I'm seeking guidance on how to address it. Here's a brief overview of my situation:

 

In 2022, I lived and worked in Illinois from January 1st to July 26th. After that, I moved to Wisconsin but continued working remotely for the same Illinois-based company. Due to our work-from-home policy still being in place and an oversight on my part, I did not submit an out-of-state notice to my employer until early 2023.

 

When filing my taxes using TurboTax, I reported this as a part-year residence with both Illinois and Wisconsin. TurboTax calculated a federal payment of $1,496 and an Illinois refund of $2,857. However, Illinois later sent me a Return Correction Notice. They corrected my return, stating that my W-2 indicated I lived in Illinois for the entire year 2022, possibly because I failed to inform my employer of my move in July. This correction significantly reduced my Illinois refund to $119.

 

I'm reaching out to the TurboTax community to seek advice on whether there's anything I can do to amend or edit my return to potentially qualify for a larger refund from Illinois. I understand that timely reporting of my move might have prevented this issue, but I'm hoping there's a solution available.

 

Thank you in advance for any insights or suggestions you can provide!

 

1 reply

December 29, 2023

Doesn't the Illinois notice say how to contest those findings?  basically you would need documents  to show Illinois you were a part-year resident.

To prove residency in Illinois, you need to provide at least two proofs of residency1Examples of documents that can be used to prove residency include:

  • Wisconsin tax return or federal tax transcript
  • Wisconsin driver’s license
  • Utility or rent bills for Wisconsin 
  • Wisconsin auto registration card
  • Residential lease in the applicant’s name
  • Corrected Wage and tax statements (IRS Form W-2c showing the breakdown between WI and Il wages
Employee
December 30, 2023

And if you haven't already done so, submit Illinois Form IL-W-5-NR to your Illinois employer.  Here's a link:

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.