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The company i work for is in Illinois, I work out of my home and live in Florida. there is nothing on my w-2 showing any state income or taxes paid.

Forum|Forum|7 years ago
June 1, 2019
1 reply
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do I still pay Illinois state taxes or Florida state tax (which there is no state tax) ?

TurboTax Deluxe Online

Best answer by LeeM

If you work from your home and it is considered your resident state and the income is earned in that state, then you would only owe income tax to that state.

No, in your case, you do not have to pay Illinois state taxes because you are a Florida resident with Florida sourced income (meaning your income was earned in Florida).

You can potentially deduct your home office related expenses as job expenses, if you itemized deductions by entering them using the directions in the FAQ below:

https://ttlc.intuit.com/replies/4800418

L

LeeMAnswer

Employee

If you work from your home and it is considered your resident state and the income is earned in that state, then you would only owe income tax to that state.

No, in your case, you do not have to pay Illinois state taxes because you are a Florida resident with Florida sourced income (meaning your income was earned in Florida).

You can potentially deduct your home office related expenses as job expenses, if you itemized deductions by entering them using the directions in the FAQ below:

https://ttlc.intuit.com/replies/4800418

2

2017baja

Neither of these responses are currently completely accurate. There is a wage threshold for Illinois. If you meet that threshold and your employer is in Illinois, you will owe Illinois taxes regardless of where you live. Your company has to have your work location listed as your state of residency (a Satellite worker) to ensure your exempt from Illinois taxes, with the exception of the above wage exception. Also, Illinois base your taxes on Residency "AND" employer location.

How do I know this, because I just went through this with the Illinois IRS. If your in a No-Income tax state such as Arizona, Texas or Tennessee, you will get some of the money back. If you manage to not have any taxes withheld and do not file a state return with Illinois, good luck.

T

TomD8

Employee

@2017baja wrote: "If you meet that threshold and your employer is in Illinois, you will owe Illinois taxes regardless of where you live."

Not true. For Illinois income taxes (as with other states), the issue is not where you live, it's where you actually work.

The work income of a non-resident of Illinois who never physically works within Illinois is not subject to Illinois income tax. See Section 304 (a)(2) (B) of the Illinois Income Tax Act:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=003500050HArt%2E+3&ActID=577&ChapterID=8&SeqStart=3100000&SeqEnd=4000000

Otherwise, every nationwide employee of a corporation based in Chicago, such as Boeing or United Airlines, would be paying taxes to Illinois.

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