the state of Wisconsin There are currently reciprocal agreements with four states: Illinois, Indiana, Kentucky and Michigan. The agreements stipulate that residents of those states who work in Wisconsin will be taxed on income earned as an employee in their state, not Wisconsin.

Do I need to file an Illinois tax return if I live in Wisconsin?

If you are a resident of Iowa, Kentucky, Michigan or Wisconsin working in Illinois, you must submit Form IL-1040Personal Income Tax Return, and Schedule NR if: …you want a refund of any Illinois income tax withheld.

If I live in Wisconsin, do I need to pay Illinois income tax?

Illinois residents working in Wisconsin are taxed only by the state of Illinois.

How do taxes work if I live in Illinois and work in Wisconsin?

Illinois and Wisconsin have tax reciprocity. This means you only have to file your tax return in your state of residence. For tax purposes, your WI income is considered IL income, and all of your income is taxable by the State of Illinois.

Should you move to a state with no income tax? (pros and cons)

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