Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

This is a question about state income taxes between IL and

WI. Earlier this year, my...
This is a question about state income taxes between IL and WI. Earlier this year, my wife and I were living in WI, I worked for a WI employer and she worked for an IL employer. We filed state taxes in WI since the two states have a reciprocity agreement. Now, I have obtained a new job in IL and now primarily live in IL. My wife still lives in WI but still is employed with the IL company. We typically file our federal return as "Married Filing Jointly". What are our options for filing state income taxes and, in the meantime, should I be withholding state income taxes from IL or WI? (Ideally, we would want to file in IL since the tax rate is lower, even after their most recent tax increase.) Thanks!
JA: Because employment law varies from place to place, can you tell me what state this is in?
Customer: I am working and living in IL now
JA: Has anything been filed or reported?
Customer: Not yet, move just happened a week or so ago. The only thing is that I am withholding IL state income taxes from my pay.
JA: Anything else you want the lawyer to know before I connect you?
Customer: Nope, that is it.
Show More
Show Less
Ask Your Own Tax Question
Answered in 12 minutes by:
8/30/2017
Chad CFP ®
Chad CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 921
Experience: Managing Director
Verified

Hello my name is ***** ***** I will be able to assist you today.

Ask Your Own Tax Question

Wisconsin currently has reciprocity agreements with four states: Illinois, Indiana, Kentucky, and Michigan. These agreements state, in general, that residents of these states will be taxed on income earned as an employee by their home state, rather than by Wisconsin. Conversely, Wisconsin will tax Wisconsin residents working in one of these states and the other state generally will not tax the income earned as an employee of Wisconsin residents who are employed in that state. Reciprocity applies only to income earned as an employee. Income earned as an employee generally includes salaries, wages, commissions, and fees.

Ask Your Own Tax Question

If your wife still lives in Wisconsin then she would pay taxes to Wisconsin even if the taxes are earned in Illinois.

You pay taxes on the money earned to the state you are living while you earned the income. Currently, you would owe taxes to Illinois.

You would have to complete a part year return for the income earned while living in Wisconsin and then income earned while living in Illinois.

Ask Your Own Tax Question

Here are two very helpful links from the department of revenue of each state.

https://www.revenue.wi.gov/Pages/faqs/pcs-work.aspx

http://www.revenue.state.il.us/Individuals/FilingRequirements/

Ask Your Own Tax Question

I would be happy to expand my answer if you have further questions.

If you have NO further questions please accept my answer.

Thank you have a great day!

Ask Your Own Tax Question
Customer reply replied 3 months ago
Thank you so much! This is extremely helpful! Based on that answer, would I need to file separate federal returns for my wife and I or could I still file a joint return? Obviously, we would need to file separate state returns in WI because she is a full year resident and I am a part year resident.

You still file one federal return, but you would have to file two state returns. A state return for when you lived in Wisconsin, but worked in Illinois and one for when you lived and worked in Illinois.

Your wife would only be included in the Wisconsin return.

Ask Your Own Tax Question

This may sound a little complicated, but if you are using an online product such as turbo tax then completing both forms is pretty straight forward.

Chad CFP ®
Chad CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 921
Experience: Managing Director
Verified
Chad CFP ® and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 3 months ago
I am very familiar with tax software so it will be a bit more time consuming but still be quite simple. I will close the question. Thanks so much for your help!

If you do have any further questions please let me know.

Thank you!

Ask Your Own Tax Question
Ask Chad CFP ® Your Own Question
Chad CFP ®
Chad CFP ®
Chad CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 921
921 Satisfied Customers
Experience: Managing Director

Chad CFP ® is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,336 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,906 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
FOR GUILLERMO: What line on the 1040 income tax return is
FOR GUILLERMO: What line on the 1040 income tax return is used to determine the sponsor's income for Form I-864? Is it line 22: TOTAL INCOME? Or, line 37, ADJUSTED GROSS INCOME?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
We are married filing jointly $90000 was our salary which
we are married filing jointly $90000 was our salary which was taxed and on a W2. We took $100000 from our rollover IRA. We are under 59 1/2. We already paid the early 10% withdrawal. Our question is w… read more
Chad CFP ®
Chad CFP ®
CERTIFIED FINANCIAL PLANNER TM, Professional
921 satisfied customers
I used AARP to file my 2016 Income Tax. I was married during
I used AARP to file my 2016 Income Tax. I was married during 2016, but my husband was in jail from Nov 2016-June 2017 and I divorced him, finalized on Feb 2, 2017. AARP filed my status as single becau… read more
taxmanrog
taxmanrog
Master\u0027s Degree
725 satisfied customers
How is the California state income tax calculated? I have
How is the California state income tax calculated? I have approximately $55,000 of income before deductions. I am married filing jointly.… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,252 satisfied customers
Are you familiar with income tax laws on business and
Are you familiar with income tax laws on business and personal returns? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Is real estate income taxed only in the state they are
Hi. Is real estate income taxed only in the state they are generated in? For example, if someone owned investment real estate in Texas that has a 0% state income tax and lives in Pennsylvania, would t… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,906 satisfied customers
I filed for an extension to file my 2017 income tax return.
I filed for an extension to file my 2017 income tax return. I recently suffered a stroke - 6 weeks ago - and have been unable to finalize my return. I should be able to file it within the next 30 days… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,610 satisfied customers
Married filing jointly. AGI $170k. we have an extension for
Married filing jointly. AGI $170k. we have an extension for our 1040 My employer has a retirement plan. Wife is self employed with $6700 Net Profit on Schedule C Line 12 1) Can she contribute $6500 to… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
We have been filing income taxes as married, filing jointly,
Hello My name is*****: What state are you in? It matters because laws vary by location. Customer: We have been filing income taxes as married, filing jointly, in California … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
The NC Department of Revenue has filed an assessment against
The NC Department of Revenue has filed an assessment against me for failing to file my 2013 return. I thought I had filed it and had a copy in my files, so I re-filed the 2013 return. Now two months l… read more
abci168
abci168
Principal
27 satisfied customers
What would the federal and state tax rate percentages be for
What would the federal and state tax rate percentages be for a $7700 IRA early withdrawal in Ohio?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,610 satisfied customers
I filed my tax return in March 2017 using turbo tax through
I filed my tax return in March 2017 using turbo tax through T.D.Ameritrade. I expected a return of over $2000.00. I filed electronically, but have heard nothing since. I checked Turbo Tax and they say there is no refund due. This also includes my state tax. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,906 satisfied customers
FEDERAL INCOME TAX: A SINGLE WOMAN RECEIVES A 2016 FORM W-2
FEDERAL INCOME TAX: A SINGLE WOMAN RECEIVES A 2016 FORM W-2 FROM HER EMPLOYER WITH A TYPO IN THE SOCIAL SECURITY NUMBER. TO DATE THE EMPLOYER HAS NOT PROVIDED A "CORRECTED" FORM W-2. IS THERE AN IRS "… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,252 satisfied customers
What is the income tax rate if it is not withdrawn from the
Hi! What is the income tax rate if it is not withdrawn from the LLC? The owner has not withdrawn any balance from the business all the amount reinvested into the business. Thank you!… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,610 satisfied customers
I filed income taxes i 2015 in Arkansas and federal with
I filed income taxes i 2015 in Arkansas and federal with Jackson Hewlett. They found an error in my state income tax. They just refiled and sent the forms in to Arkansas. After getting home I noticed … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,252 satisfied customers
US FEDERAL INCOME TAX. QUESTION: A SINGLE WOMAN OWNS A
US FEDERAL INCOME TAX. QUESTION: A SINGLE WOMAN OWNS A HOUSE, HER PRINCIPAL RESIDENCE, AND LIVES IN IT FOR 4 YEARS. IN 2017 SHE MARRIES A MAN WHO WILL ALSO USE IT AS HIS PRINCIPAL RESIDENCE BUT NOT HA… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,252 satisfied customers
I filed a tax return with the department of revenue in
I filed a tax return with the department of revenue in Oregon. They have filed a tax lied on me. The return was 2013 and I think I have audit protection from you. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Is a 1040 US Individual Income Tax Return federal income
Hi Is a 1040 US Individual Income Tax Return federal income taxes owed to the US government? Or is it FICA? I received a letter owing some back taxes and since I'm a priest with a weird set of tax exc… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
682 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x