Out of state worker tax question (Illinois related!)
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- Blackhawk
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Out of state worker tax question (Illinois related!)
Michelle (who no longer lives here in practice, but is still on the books as a resident) just took a job across the state line in Illinois. She's trying to figure out whether it would be to her advantage to become a legal resident of Illinois to avoid higher taxes/other hassles.
I have not had an earned income in more than 20 years, so I'm way out of date on anything tax related. Can anyone offer any thoughts?
I have not had an earned income in more than 20 years, so I'm way out of date on anything tax related. Can anyone offer any thoughts?
(˙pǝsɹǝʌǝɹ uǝǝq sɐɥ ʎʇıʌɐɹƃ ʃɐuosɹǝd ʎW)
- pr0ner
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Re: Out of state worker tax question (Illinois related!)
IANAA, but a quick Google search shows that Indiana and Illinois have no tax reciprocity agreements, so she'd owe state income taxes to both states as an Indiana resident.
Hodor.
- dbt1949
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Re: Out of state worker tax question (Illinois related!)
I remember when I lived in California they wanted their taxes no matter where in the world you earned the money. Even in a gulag I suspect.
Ye Olde Farte
Double Ought Forty
aka dbt1949
Double Ought Forty
aka dbt1949
- naednek
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Re: Out of state worker tax question (Illinois related!)
which is funny, because recently I received an inflation relief check. CA isn't taxing it as income, but the FED is, and man they took $215 out of the $1050 I received when I filed my taxes. BOO
hepcat - "I agree with Naednek"
- Zarathud
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Re: Out of state worker tax question (Illinois related!)
Where does she plan to live for the majority of the year? Since she’s working in IL, IL will withhold income tax.
The IL income tax rate is 4.95%. The IN income tax rate is 3.23%. IL doesn’t tax the first $2,375 of income, while IN taxes after the first $1,000 income. Each state has different credits and deductions.
You need to do the math to know the tax — and whether it’s worth dealing with two states.
The IL income tax rate is 4.95%. The IN income tax rate is 3.23%. IL doesn’t tax the first $2,375 of income, while IN taxes after the first $1,000 income. Each state has different credits and deductions.
You need to do the math to know the tax — and whether it’s worth dealing with two states.
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"I don't stand by anything." - Trump
“Bad men need nothing more to compass their ends, than that good men should look on and do nothing.” - John Stuart Mill, Inaugural Address Delivered to the University of St Andrews, 2/1/1867
“It is the impractical things in this tumultuous hell-scape of a world that matter most. A book, a name, chicken soup. They help us remember that, even in our darkest hour, life is still to be savored.” - Poe, Altered Carbon
- Scuzz
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Re: Out of state worker tax question (Illinois related!)
I am not an accountant but I think the year she moves, if there is income in both states, she will have to file with both states. After that she only needs to file in her state of residence if that is the only state where she had income.
Black Lives Matter
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Re: Out of state worker tax question (Illinois related!)
I don't think the state of residence, as much as the state the income was earned. She can live in IN, not have to file in IN if all of her income is earned in IL (where she does have to file). But I defer to Zarathud in all such maters.
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- Scuzz
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Re: Out of state worker tax question (Illinois related!)
That is what I basically said. She will have to file in any state where she had income.
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Re: Out of state worker tax question (Illinois related!)
And, quite frankly, we need her contribution!Scuzz wrote: ↑Tue Jan 31, 2023 11:00 pmThat is what I basically said. She will have to file in any state where she had income.
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