working in IL and living in IN

Forum|Forum|1 year ago
February 16, 2025
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Working in IL and living in IN. Does there need to be taxes filed in IL and Indiana ? Is there a specific process that needs to be followed? There was state income tax withheld on W2.

Not A Product Question

Vanessa A

Yes, since IL and IN do not have reciprocal agreements, you will need to file a return for both states.

You will file the IL return first as your non-resident state and then file your IN Resident state return last. You will get a credit for taxes paid to IL on your IN return so your income is not double taxed. Even though IL does have a higher tax rate than IN, you will not get an extra credit on your IN return for the extra amount you paid to IL. You will just not have to pay taxes on that same income again to IN.

Multiple States

File Non Resident State Return

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