Help me understand IL / WI reciprocity: Taxpayer lives in IL, worked in WI, why wouldn't the WI taxes be fully refunded?

[jeanmarc]

I have a client with a W2 where he paid $1479 in Wisconsin taxes but he was a full-year resident of Illinois. I would think that because of the reciprocity agreement between the states he would be refunded the entire $1479 on the WI return. But, he is only being refunded $480.

[dkh]

Are you filing as NonResident for Wisconsin?     At the bottom of the Federal Information Sheet is section to enter Nonresident information.

[jeanmarc]

Correction: it's $1480 in WI taxes.

[jeanmarc]

Yes, that part has been filled out as IL Full-Year Resident and WI Nonresident.
Correction though: It's $1480 in WI taxes.

[garman22]

If he is full resident of Illinois and works in WI, he should be refunded the whole dollar amount and he will owe Illinois tax on that income. 

[dkh]

@jeanmarc   So everything is working correctly ? refund amount is correct for the $1480 wages ?  

[jeanmarc]

@garman22 That’s what I thought too but Proseries is not giving him a full refund on the WI taxes so I wonder if there is something else I must do? I have him listed as full time IL resident and WI nonresident. 

[garman22]

Make sure on the fed info worksheet page you quickzoom to Wi NR and put zero down on earnings from WI. Then there is a line to put Illinois on Wisconsin State Return. There now should be the full refund. As of now its seems like its taxing it. 

Make sense?