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Posted by Nietzsche on December 2, 2006, 8:41 pm
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I live in Indiana. I'm about to start work in Illinois and
I've rented an apartment in Chicago. Will I need to file a
tax return in both states or just one? I'll be in Chicago
during the week for work but I'll go home to Indiana on
weekends. Thanks for any info.
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Posted by Phil Marti on December 3, 2006, 3:46 pm
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> I live in Indiana. I'm about to start work in Illinois and
> I've rented an apartment in Chicago. Will I need to file a
> tax return in both states or just one?
Illinois and Indiana are not reciprocal, so you'll have to
file in both states. IN should give you a credit based on
the tax you pay to IL on your IL source income. Prepare
your returns in this order:
1. Federal
2. Illinois
3. Indiana
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Katie on December 3, 2006, 4:05 pm
Please log in for more thread options Nietzsche wrote:
> I live in Indiana. I'm about to start work in Illinois and
> I've rented an apartment in Chicago. Will I need to file a
> tax return in both states or just one? I'll be in Chicago
> during the week for work but I'll go home to Indiana on
> weekends. Thanks for any info.
Illinois and Indiana used to have a reciprocal agreement,
but it was rescinded in 1998 and has not been renewed.
Your earnings will be Illinois source income, and your
employer should withhold Illinois income tax. You'll file a
nonresident return in Illinois. You'll also file a resident
return in Indiana and report all of your income, including
your Illinois earnings. Indiana will give you credit for
the tax you pay to Illinois, limited to the proportion of
your Indiana tax liability that relates to that income.
Be aware that you run the risk of being determined to be a
resident, taxable on all of your income, by Illinois as well
as Indiana. You will remain an Indiana resident because
your domicile (your main home) is there. However, Illinois
defines a resident for tax purposes to include an individual
who is present in the state for a purpose that is not
temporary or transitory, regardless of domicile. I would
argue that you are present in Illinois each week for the
temporary purpose of performing services for your employer,
but I'm not sure how receptive Illinois would be to that
argument.
Katie in San Diego
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Benjamin Yazersky CPA on December 6, 2006, 2:04 am
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> I live in Indiana. I'm about to start work in Illinois and
> I've rented an apartment in Chicago. Will I need to file a
> tax return in both states or just one? I'll be in Chicago
> during the week for work but I'll go home to Indiana on
> weekends. Thanks for any info.
Be sure to read the residency statutes for both states to
see what their criteria is for being considered a resident.
It is possible to be a resident of both states.
Usually, the resident state allows a credit for taxes paid
to the non resident state.
Each state is different.
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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