How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10494
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

I earn income from a farm in Illinois. I do not live in Illinois.

This answer was rated:

I earn income from a farm in Illinois. I do not live in Illinois. Am I still required to pay tax to Illinois for that income?

NPVAdvisor :

Hi,

NPVAdvisor :

Yes, according to the IL dept of revenue non-residents must file the Illinois non-resident return, if the income is from an IL source and if the income is greater than the Illinois exemption allowance

NPVAdvisor :

From their web-site:If you are a nonresident, you must file Form IL-1040 and Schedule NR if



  • you earned enough taxable income from Illinois sources to have a tax liability (i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50)

NPVAdvisor :

I still don't see you coming into the chat ... I'll move us to the Q&A mode ... Maybe that will help ... (We can still continue a dialogue there, just not in real-time chat as we can here ... Let me know if you have further questions

Lane and 3 other Tax Specialists are ready to help you


Hi Roberta,

I was just checking back in, as I never saw you come into the chat, and on my end, it doesn't look my answer transferred in here.

Just in case, yes, non-residents are supposed to file a non-resident form in IL and pay taxes on Illinois source income.

Here's the website that explains: http://tax.illinois.gov/Individuals/FilingRequirements/



What they say is the following:

"If you were a nonresident, you must file Form IL-1040 and Schedule NR ifyou earned enough taxable income from Illinois sources to have a tax liability (i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50), or

you want a refund of any Illinois Income Tax withheld in error. You must attach a letter of explanation from your employer.

NOTE: If you are a nonresident and your only income in Illinois is from one or more partnerships, S corporations, or trusts that either filed a Form IL-1023-C, Composite Income and Replacement Tax
Return, on your behalf or withheld enough Illinois Income Tax to pay your liability, you are not required to file a Form IL-1040.

[If you were] an Iowa, Kentucky, Michigan, or Wisconsin resident who worked in Illinois, you must file Form IL-1040 and Schedule NR if
you received income in Illinois from sources other than wages, salaries, tips, and commissions, or

you want a refund of any Illinois Income Tax withheld.
If you received wages, salaries, tips, and commissions from Illinois employers, you are not required to pay Illinois Income Tax on this income. This is based on reciprocal agreements between Illinois and these states."




Hope this helps

Lane

(Positive feedback appreciated. That's how we're paid)

But, come back here if you have ANY questions on this.


Thanks Roberta,

... looks like it's there now.

Anyway, thanks for the feedback.

Let me know if you need anything else.

Lane