State Income Taxes Working in One State & Living in Another

WARNING: I'm not a qualified tax professional nor a qualified financial professional. This is my interpretation filing state income taxes and should not be considered accurate. Consult with qualified tax and finance professionals.

In the U.S.A., completing annual income tax returns can be a laborious, frustrating task but it's sometimes even more complicated when you have income from one state while living in another. That's the situation my daughter has run into as she attends university in another state, earning wages working a part-time job while still considering Michigan her home state. She recently completed her Federal income taxes using TurboTax Online when she contacted me to discuss why the free online software was creating two state income tax returns for her to complete as well.

I looked into the situation and after researching and reviewing information from various online tax software companies as well as directly from links associated with the State of Illinois, I determined she only needed to file an income tax return for her home State of Michigan thanks to a reciprocation agreement between Illinois and Michigan. That reciprocity between our two states allows my daughter to earn wages in Illinois without her employer withholding Illinois state income taxes and therefore, not requiring her to file an Illinois state income tax. She does have to file a State of Michigan income tax and currently owes Michigan for income taxes on her earned wages in Illinois since she is still a resident of Michigan.

Below, I've listed some helpful links from various sources I used to make my determination. One or two of the links may also be considered an affiliate link as anyone clicking it and signing up for one of the tax services may result in myself or my daughter receiving a complimentary gift card from the tax service. However, the potential benefits from those links is likely limited in duration due to the close proximity to this year's tax deadline and is not a driving reason for me creating this video. My reason for creating this video is to potentially help anyone else in a similar situation to seek proper guidance from qualified tax and finance professionals with a better understanding of how reciprocation agreements between states may impact necessary income tax filings for individuals working in one state and living in another.

Benjamin Franklin Quote:
The United States Constitution’s ratification in 1788 a year before and the start of a new government under it was the context of his quote in 1789: “Our new Constitution is now established, everything seems to promise it will be durable; but, in this world, nothing is certain except death and taxes.”

Income Tax Information Regarding Working in One State While Living in Another State:
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State Income Tax links specific to Illinois:
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The following links may benefit myself or my daughter with a gift card if clicked and services purchased:
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As an Amazon Associate, I earn from qualifying purchases. Some of the following links may be affiliate links which means if you buy something, I'll receive a small commission.

Camera Gear Used to Create This Video or Just Good Gear In My Opinion:
GoPro HERO10 Black: [ Ссылка ]
Amazon GoPro Store: [ Ссылка ]
GoPro Shorty Mini Extension Pole & Tripod: [ Ссылка ]

B-Roll Video Credits:
Tax Form
Video by Mikhail Nilov from Pexels
Tax Form and Pencils
Video by Towfiqu barbhuiya from Pexels
Laptop Man
Video by Karolina Grabowska from Pexels
Coffee Man on Laptop
Video by Jack Sparrow from Pexels
#taxes

⚠ DISCLAIMER: While the creator of this channel strives to make the information presented in this video as accurate as possible, they make no claims, promises, or guarantees about the accuracy, completeness or applicability of the content. No information contained in this video shall create any expressed or implied warranty or guarantee of any particular result. All do-it-yourself projects entail risk. It is the sole responsibility of the viewer to assume this risk. The channel creator is not responsible or liable for any loss damage (including, but not limited to, actual, consequential, or punitive), liability, claim, or any other injury or cause related to or resulting from any information or actions posted in this video.

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