You Wisconsin My Salary, But Illinois Gets the Tax Bill? Welcome to Border Buddy Tax Blues!
Living the good life in Illinois but crossing the border to hustle in Wisconsin? Sounds like you're a tax adventurer, my friend! But before you picture yourself dodging tax bullets like Neo in The Matrix, there are a few things to consider. Buckle up, because we're about to untangle the weird and wonderful world of working in one state, living in another (while hopefully not wearing your cheesehead to a Bears game).
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| What If I Work In Wisconsin But Live In Illinois |
The Reciprocity Rescue: You Don't Double Dip on Taxes (Unless Your Employer Got Confused)
Here's the good news: Illinois and Wisconsin are BFFs when it comes to taxes. They have a thing called reciprocity, which basically means they won't double tax your hard-earned cheese curds (or whatever Wisconsinites work for). So, you only pay income tax to the state you live in, which is Illinois in your case.
However, if your employer in Wisconsin mistakenly withholds taxes, don't panic! You can file a non-resident Wisconsin tax return to get that money back. Don't worry, it's not like filing for asylum in another tax country. It's a simple form to get your money flowing back to Illinois.
Key takeaway: You only file taxes in Illinois, but if your employer messes up, there's a way to get your Wisconsin taxes back.
QuickTip: Skim first, then reread for depth.
But Wait, There's More! (Because Taxes Always Have More)
This reciprocity magic only applies to your W-2 wages. If you're a freelancer, have a side hustle in Wisconsin, or win the Illinois lottery (lucky you!), those earnings get taxed by the state you earned them in, regardless of where you live.
So, remember: Reciprocity is your friend for W-2 wages, but keep track of other income sources.
FAQ: You've Got Questions, We've (Hopefully) Got Answers
How to file an Illinois tax return?
Tip: Focus more on ideas, less on words.
The Illinois Department of Revenue has you covered: https://tax.illinois.gov/
How to get a non-resident Wisconsin tax return form?
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Head over to the Wisconsin Department of Revenue's website: https://www.revenue.wi.gov/Pages/Home.aspx
Tip: Take mental snapshots of important details.
How to avoid your employer withholding Wisconsin taxes?
Fill out a form called a W-220 to claim residency in Illinois. Your friendly HR department should have one on hand.
How to know if I owe taxes in another state?
Tip: Reading twice doubles clarity.
If you have income outside your W-2 wages and reciprocity, consult a tax professional or refer to the tax guidelines of the state you earned the income in.
How to deal with the existential dread of doing taxes in general?
Distract yourself with cheese curds and deep-dish pizza. You earned it!
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