Unfortunately yes. If you earned wages in IL but are a resident of IN, your income will be considered IL-source income and you would need to report this income on an IL nonresident state income tax return. You will want to contact your IL employer regarding your state withholdings.
What if I live in Indiana and work in Illinois?
If you work in Illinois and live in Indiana, and you owe taxes, you do have to pay taxes to both states each year. However, Indiana tax credits keep you from being “charged twice.”
Do you have to pay Illinois taxes if you work in Indiana?
I live in Indiana, but I work in Illinois. My job takes out Indiana state taxes, not Illinois taxes. Do I have to file as a nonresident of Illinois? Unfortunately yes.
What to do if you live in Illinois but work in Indiana?
However, you should also be able to claim a credit on your resident state income tax return for the state income tax that you paid for the nonresident state. File an IN nonresident return, and then an IL resident one. June 4, 2019 11:03 PM I live in Illinois but work in Indiana? Indiana taxes are being taken out of my check. What do i do?
Do you have to pay Illinois income tax if you live in Michigan?
You cannot, however, take a credit for taxes withheld from these states on your Illinois return. You are not subject to Illinois income tax on wages, salaries, tips, or commissions received from employers in Illinois if you are a resident of Iowa, Kentucky, Michigan, or Wisconsin.
Can You claim Illinois tax credits in Indiana?
Indiana residents can file either the form IT-40 or IT-40EZ depending on the complexity of their taxes. However, residents who work in Illinois and pay Illinois tax may be able to claim credits on their Indiana returns for both state and local credits paid to Illinois. This prevents Indiana residents who work in Illinois from being “charged twice.”
