IL income tax?

[Dosproduction]

So I live in Indiana, but work in IL. IL charges me income tax. I am being taxed without representation by IL. Why can’t I sue over this? Obviously it is financially harming me.

 

[gassprint1]

So I live in Indiana, but work in IL. IL charges me income tax. I am being taxed without representation by IL. Why can’t I sue over this? Obviously it is financially harming me.

Its a working tax. You pay the commies to work in their state.

 

[2tonic]

1. Your rate of pay is higher in Illinois than it would be in Indiana for the same job.

2. It's not hurting you very much, since Indiana gives you credit for the tax you pay to Illinois.



That being said, I do agree that it's ridiculous that IL and IN don't have a reciprocal tax agreement. They just don't play well together.
Obviously, one of them pissed in the others sandbox, cause they both have agreements with all the surrounding states.

 

[04FXSTS]

That being said, I do agree that it's ridiculous that IL and IN don't have a reciprocal tax agreement. They just don't play well together.
Obviously, one of them pissed in the others sandbox, cause they both have agreements with all the surrounding states.

They had that kind of agreement at one time, can't remember the details but somebody thought they were not getting enough. Jim.

 

[KLB]

They had that kind of agreement at one time, can't remember the details but somebody thought they were not getting enough. Jim.

IL.

Once upon a time more IL residents came to IN to work in the Mills and such. At some point that flipped with people going into Chicago to work. I'm guessing that is when the agreement went buh-bye.

 

[oze]

I had to file in both states when I first moved out of Ill. What a nightmare that was.

 

[snorko]

As president of my company I signed seven different tax returns for various counties in Kentucky as well as the state last year. Most of the counties there have taxes on income earned from work there. In our case this is typically like 45 minutes looking at a property as part of the assignment. Well under 5% of the time spent on the job is in Ky. All but 1 or 2 of the checks were under $50.00. I am sure I paid hundreds to my accountants to calculate the numbers.

 

[wagyu52]

My wife works in ILL. We have learned to pay her Indiana tax in April. Didn’t use to be that way but it is now. You are actually better off paying it at the end than having it withheld.

 

[Leo]

My information is may be out of date, but I worked in IL and lived in Indiana for years. There was some kind of agreement between those states that the taxes out of my paycheck would be credited as Indiana taxes. I don't remember every detail, but I know I did not have to pay double state taxes.

 

[Leo]

I am sure I paid hundreds to my accountants to calculate the numbers.

That is my pain this year. I have multiple investments that all lost money this year. Significant loss. Each of them require various forms and reports, if I make money or lose money. The accountant charges extra for all that extra work.

It is sad when you have to pay a lot of dollars to tell the government that all the professionally handled investments were losses.

Almost as sad as having to pay $75/1000 for primers.

 

[tsilveus]

That is my pain this year. I have multiple investments that all lost money this year. Significant loss. Each of them require various forms and reports, if I make money or lose money. The accountant charges extra for all that extra work.

It is sad when you have to pay a lot of dollars to tell the government that all the professionally handled investments were losses.

Almost as sad as having to pay $75/1000 for primers.

where are you finding primers for $75/1000?
I haven't seen CCI/Federal/Winchester/Remington primers for less than $100 / 1 K shipped for a long time.

 

[Ingomike]

As president of my company I signed seven different tax returns for various counties in Kentucky as well as the state last year. Most of the counties there have taxes on income earned from work there. In our case this is typically like 45 minutes looking at a property as part of the assignment. Well under 5% of the time spent on the job is in Ky. All but 1 or 2 of the checks were under $50.00. I am sure I paid hundreds to my accountants to calculate the numbers.

I knew pro ball players paid tax in every state they played but did not know about counties? How do they even know you were there? How the heck does a salaried individual break that down?

 

[HoughMade]

So I live in Indiana, but work in IL. IL charges me income tax. I am being taxed without representation by IL. Why can’t I sue over this? Obviously it is financially harming me.

Because "no taxation without representation" is a great slogan for a revolution, but not a cause of action.

Besides, you voluntarily put yourself in that position.

 

[KLB]

I had to file in both states when I first moved out of Ill. What a nightmare that was.

I did it for the last 18. This will be my last time. I work from home officially now.

 

[Ingomike]

I did it for the last 18. This will be my last time. I work from home officially now.

Interesting, if you are managed and work for an Illinois based company at home in Indiana you owe no Illinois tax?

 

[snorko]

I knew pro ball players paid tax in every state they played but did not know about counties? How do they even know you were there? How the heck does a salaried individual break that down?

Typically they would not know if you were there or not. Two counties in which we do more than a couple jobs a year send us quarterly forms to fill out. The rest are kind of on an honor basis. The whole system is not set up for this but for someone who has a physical presence there.

Couple years ago I got a letter from a Ky City saying I owed some ridiculous penalty for failure to register as a business. Turns out my accountants had taken a list of all the Kentucky work, calculated, then filed the appropriate returns. Ky City sends me this notice with the registration form. I could literally only fill in maybe 20% as the rest did not apply. I called them and spoke with a very helpful and kind lady who concluded we did not meet the definition and did not need to register. Instead, we needed to file for a temporary permit and pay $50.00 every time we had a job there. Since what we paid in taxes was about the same as the fee, she waived the penalty. Now whenever we have a job in that Ky City I add a line item of $50.00 to the invoice.

 

[Ingomike]

Typically they would not know if you were there or not. Two counties in which we do more than a couple jobs a year send us quarterly forms to fill out. The rest are kind of on an honor basis. The whole system is not set up for this but for someone who has a physical presence there.

Couple years ago I got a letter from a Ky City saying I owed some ridiculous penalty for failure to register as a business. Turns out my accountants had taken a list of all the Kentucky work, calculated, then filed the appropriate returns. Ky City sends me this notice with the registration form. I could literally only fill in maybe 20% as the rest did not apply. I called them and spoke with a very helpful and kind lady who concluded we did not meet the definition and did not need to register. Instead, we needed to file for a temporary permit and pay $50.00 every time we had a job there. Since what we paid in taxes was about the same as the fee, she waived the penalty. Now whenever we have a job in that Ky City I add a line item of $50.00 to the invoice.

That is just crazy! Doesn't everyone who works on your job have to pay the tax? Is the company doing the job Indiana or Kentucky based?

 

[snorko]

That is just crazy! Doesn't everyone who works on your job have to pay the tax? Is the company doing the job Indiana or Kentucky based?

Professional Indiana based company. 100% service, no production or other. It is crazy. I can be hired by an Indiana client to appraise a property owned by an Indiana resident which happens to be in Ky. I will spend maybe an hour or so in Ky doing the most basic of tasks such as walking through a building, taking pictures, etc. Real work is done in the office in Indiana.

 

[Ingomike]

Professional Indiana based company. 100% service, no production or other. It is crazy. I can be hired by an Indiana client to appraise a property owned by an Indiana resident which happens to be in Ky. I will spend maybe an hour or so in Ky doing the most basic of tasks such as walking through a building, taking pictures, etc. Real work is done in the office in Indiana.

Do you have any of this county to county tax on the Indiana side?

 

[KLB]

Interesting, if you are managed and work for an Illinois based company at home in Indiana you owe no Illinois tax?

Correct. It is where you actually work.

If you travel for work, my understanding is you technically owe income tax in each state you work in that does not have a reciprocal agreement.