Income Tax Rate: 3% Flat (Illinois has a Flat Income Tax Rate)
Governor: Pat Quinn
Income Tax Revenue (2007): $30,578,017,000.00
Illinois Population 12,825,809
If No Payment Enclosed, Mail To:
Illinois Department Of Revenue
PO BOX 1040
Galesburg IL 61402-1040
If Payment Enclosed, Mail To:
IIllinois Department Of Revenue
Springfield IL 62726-0001
If you are a Illinois resident and you either filed a federal tax return or your Illinois exemption allowance is less than your Illinois base income you need to file a Illinois tax return. You will need to use Form IL-1040 to file your return.
If you are a part-year resident of Illinois that earned income from Illinois sources when you weren’t a resident, earned income from any source when you were a resident, or need a refund from withheld Illinois income you will need to file a part-year resident tax return. To file a part-year resident return you will need to file both Form IL-1040 and Schedule NR.
If you are an Illinois resident who works in Iowa, Kentucky, Michigan, or Wisconsin, you will need to file Form IL-1040 and include your all income from Illinois, Iowa, Kentucky, Michigan, and Wisconsin. All wages earned in any of these states are to be taxed by Illinois, the resident’s state, and not the state where the income was earned according to reciprocal agreements. If you have an employer in one of these states who is withholding taxes for one of these states you may need to obtain the proper paperwork from one of the states to allow that income to be released. However you cannot claim income taxed by one of these states as a credit in your Illinois taxes.
For income earned in states besides Iowa, Kentucky, Michigan, and Wisconsin, you are still subject to Illinois taxes. However if the state that you earned the income in requires you to pay a tax on the income earned in that state you can claim the taxed income as a credit by using Schedule CR, to avoid dual taxation.
If you are an Iowa, Kentucky, Michigan, or Wisconsin resident who worked in Illinois you do not need to pay Illinois taxes on wages, salaries, and tips is because of certain reciprocal agreements between Illinois and your state of residency. Illinois lottery winnings, sale of property, or any other source of income from Illinois is not included in such agreements and thus you need to pay tax on this income. To pay taxes on income from these other sources or if you need a refund of Illinois Income Tax that was withheld, you will need to file Form IL-1040 and Schedule NR. Fill out Form IL-W-5-NR if your employer is withholding Illinois tax, and give it to your employer so they will stop withholding income. You will also need to file an Illinois return to get any withholdings refunded to you.
If you live in a state besides Iowa, Kentucky, Michigan, or Wisconsin but worked in Illinois you will need to file Form IL-1040 and Schedule NR because you are required to pay tax on income earned from an Illinois source. You should contact your home state about its filing requirements so that you can avoid dual taxation.
If you weren’t an Illinois resident at any time during the tax year you qualify as a nonresident of Illinois. If you are a nonresident of Illinois and you need a refund of Illinois Income Tax withheld in error or your Illinois exemption allowance is less than your Illinois base income from Schedule NR you must file Schedule NR and Form IL-1040. A letter of explanation from your employer must be attached.