Illinois Department of Revenue
 
 
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Illinois resident and earn wages in another state.

 
 
Answer #806 -- ( Published 01/21/2011 04:30 PM | Updated 08/08/2012 10:01 AM )

I am an Illinois resident and earn wages in another state.  What should I do if the income tax rate in the state where I work is lower than the 5% Illinois income tax rate?

If the other state's income tax rate is lower than the Illinois rate, you may complete Form W-4, Employee's Withholding Allowance Certificate, and give it to your employer to have additional tax withheld from your paycheck.  You may also send us estimated tax payments using Form IL-1040-ES, Estimated Income Tax Payments for Individuals.

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