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Level 5
April 12, 2024
Question

Help me understand IL / WI reciprocity: Taxpayer lives in IL, worked in WI, why wouldn't the WI taxes be fully refunded?

  • April 12, 2024
  • 2 replies
  • 17 views

I have a client with a W2 where he paid $1479 in Wisconsin taxes but he was a full-year resident of Illinois. I would think that because of the reciprocity agreement between the states he would be refunded the entire $1479 on the WI return. But, he is only being refunded $480.

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2 replies

dkh
Level 15
April 12, 2024

Are you filing as NonResident for Wisconsin?     At the bottom of the Federal Information Sheet is section to enter Nonresident information.

 

jeanmarcAuthor
Level 5
April 12, 2024

Yes, that part has been filled out as IL Full-Year Resident and WI Nonresident.
Correction though: It's $1480 in WI taxes.

Intuit Community Champion
April 13, 2024

If he is full resident of Illinois and works in WI, he should be refunded the whole dollar amount and he will owe Illinois tax on that income. 

jeanmarcAuthor
Level 5
April 12, 2024

Correction: it's $1480 in WI taxes.