RE: [taxchat] KY Non-Resident & Taxes

I took a quick look at the instructions for the IL-CR. I think that there is a reciporcal agreement between the two states that is preventing you from taking the credit. You have to file a return for KY and claim the refund there.

 

From page 2 of the instructions:

What if I earn income in Iowa, Kentucky, Michigan, or Wisconsin?

If you earned wages, salaries, tips, or other employee compensation from an employer in Iowa, Kentucky, Michigan, or Wisconsin while you were a resident of Illinois, you are covered by a reciprocal agreement between that state and Illinois and are not taxed by that state on your compensation. However, you may be taxed on other income.

If your employer withheld taxes or you paid tax to these states on your compensation, you must claim a refund from that state. You may not claim a credit on Schedule CR for that tax. You must file the appropriate forms with that state to receive a refund of taxes withheld in error.

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From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of Lynne Ayton
Sent: Saturday, October 11, 2008 4:38 PM
To: taxchat@yahoogroups.com
Subject: [taxchat] KY Non-Resident & Taxes

anyone out there (on this lovely sat) from IL who knows about KY income taxed in KY & the credit not being allowed on the IL-CR?  im a state volunteer for IL & im being given info by my software company that the CR isnt being produced because my client doesnt have enough tax paid to KY to get the credit.  there has to be something wrong.
lynne

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