Accounting for Reciprocal States - IL and WI

Forum|Forum|1 year ago
April 7, 2025
2 replies
14 views

Taxpayer (MFJ) is the spouse and works in WI, but lives in IL.

The W-2 has WI as the state code and has withholding to WI.

Other than checking the NR box at the bottom and noting WI, what else needs to be done in ProSeries to account for the reciprocity?

ProSeries Professional

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G

Giammusso

Level 3

I have a client in a similar situation. Lives in NY, works in NJ. His W2 has amounts for both NY & NJ. I can't remember if I had to manually open the non-resident form but you might want to try that. You'll most likely have to file a non-resident WI return which may also trigger the credit to IL.

Hope this helps.

Accountant-Man

Level 13

IDK about WI and IL, but NY and NJ do not have a reciprocal agreement, so your guy has to pay tax in NJ and claim a credit in NY.

And NJ and NY calculate taxable wages differently. so beware.

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T

Terry53029

Intuit Community Champion

Your clients employer either made an error or client did not tell the employer to withhold IL state taxes. You will have to file a WI nonresident return to get the withholdings back. You also have to include that income in IL, and you cannot take a credit for taxes paid to WI

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