What States Have a Reciprocal Agreement with Illinois?
What States Have a Reciprocal Agreement with Illinois?
An Illinois resident who worked in Iowa, Kentucky, Michigan, or Wisconsin, you must file Form IL-1040 and include as Illinois income any compensation you received from an employer in these states. Compensation paid to Illinois residents working in these states is taxed by Illinois. Based on reciprocal agreements between Illinois and these states, these states do not tax the compensation of Illinois residents.
If your employer in any of these states withheld that state’s tax from your compensation, you may file the correct form with that state to claim a refund. You may not use tax withheld by an employer for these states as a credit on your Illinois return.
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.
The reciprocal agreements do not apply to any other income you might have received, such as Illinois lottery winnings.
Please review the illinois.gov website for more information.
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