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A Stupid Income Tax Question.  
User currently offlineLOT767-300ER From , joined Dec 1969, posts, RR:
Posted (7 years 4 months 3 weeks 7 hours ago) and read 1442 times:

A stupid question maybe someone can quickly answer because I dont feel like going to HR block right now.

I am in college in Florida most of the year (9 months out of 12) and I work in Florida (and my work address is a Florida one which is not a PO Box but a normal address where I live) but my drivers license is from Illinois and car is is registered in Illinois. However I did not get a Illinois State Tax Return form (and FL does not have a state income tax) so it is rather puzzling.

Do I post a Illinois State Tax Return or not?

[Edited 2007-03-08 01:58:13]

32 replies: All unread, showing first 25:
 
User currently offlineAA787823 From , joined Dec 1969, posts, RR:
Reply 1, posted (7 years 4 months 3 weeks 7 hours ago) and read 1435 times:

As long as you earned all the $$ in FL and did not earn any in IL, then you should be ok. If you did earn any of it in IL then a partial year resident tax is computed. Each state is different.

User currently offlineLOT767-300ER From , joined Dec 1969, posts, RR:
Reply 2, posted (7 years 4 months 3 weeks 7 hours ago) and read 1429 times:

No money earned in Illinois. I am figuring to post partial residency in Illinois....Tax Cut says I dont need to pay IL taxes that way.

User currently offlineBCAInfoSys From , joined Dec 1969, posts, RR:
Reply 3, posted (7 years 4 months 3 weeks 6 hours ago) and read 1417 times:

Quoting LOT767-300ER (Reply 2):
No money earned in Illinois. I am figuring to post partial residency in Illinois....Tax Cut says I dont need to pay IL taxes that way.

As one who does tax software for a living: your state of residency doesn't mean squat. It's all about where the income was earned. If you earned it in Florida, and Florida does not have a state income tax, then all you have to worry about is the IRS.


User currently offlineLas757300 From United States of America, joined May 2004, 261 posts, RR: 0
Reply 4, posted (7 years 4 months 3 weeks 6 hours ago) and read 1410 times:

I'm not familiar with income tax residency law in Illinois, but I know Minnesota income tax residency is determined by looking at a bunch of factors, including driver's license and car registration.

If you don't have wages earned in Illinois you will not have wage withholdings you might want refunded. You could be considered a resident of Illinois, but I doubt your income is high enough to show up on Illinois's audit radar. Don't bother filing an Illinois return.



KMSP
User currently offlineBCAInfoSys From , joined Dec 1969, posts, RR:
Reply 5, posted (7 years 4 months 3 weeks 6 hours ago) and read 1407 times:

Quoting Las757300 (Reply 4):
If you don't have wages earned in Illinois you will not have wage withholdings you might want refunded. You could be considered a resident of Illinois, but I doubt your income is high enough to show up on Illinois's audit radar. Don't bother filing an Illinois return.

You have it both right and wrong there. Since he's not a resident, he has no withholding to be refunded. Right. The part about avoiding an audit, wrong. There's nothing to audit as he has no Illinois taxable income. Like I said, all he has to worry about is the IRS.


User currently offlineLOT767-300ER From , joined Dec 1969, posts, RR:
Reply 6, posted (7 years 4 months 3 weeks 6 hours ago) and read 1403 times:

Would it not be wise to file a Illinois State Tax 1040 with a Partial Residency attachment instead of not filing any at all? This would ensure I filed a State Tax Return even though I have no taxable so my bases are covered.

Tax Cut has computed I would not owe illinois anything (for obvious reasons) but that I would still have to file the 1040 to IL.

[Edited 2007-03-08 02:53:49]

User currently offlineBCAInfoSys From , joined Dec 1969, posts, RR:
Reply 7, posted (7 years 4 months 3 weeks 6 hours ago) and read 1390 times:

Quoting LOT767-300ER (Reply 6):
Would it not be wise to file a Illinois State Tax 1040 with a Partial Residency attachment instead of not filing any at all? This would ensure I filed a State Tax Return even though I have no taxable so my bases are covered.

Tax Cut has computed I would not owe illinois anything (for obvious reasons) but that I would still have to file the 1040 to IL.

Do whatever makes you feel better. But in your situation, I wouldn't waste my time. They're not going to care either way.

And like I said, this is what I do for a living. I'm an Implementation Consultant (Computer Programmer) for a firm contracted to do the technical side of the income taxes for the State of Utah.


User currently offlineLOT767-300ER From , joined Dec 1969, posts, RR:
Reply 8, posted (7 years 4 months 3 weeks 6 hours ago) and read 1389 times:

Quoting BCAInfoSys (Reply 7):
Do whatever makes you feel better. But in your situation, I wouldn't waste my time. They're not going to care either way.

And like I said, this is what I do for a living. I'm an Implementation Consultant (Computer Programmer) for a firm contracted to do the technical side of the income taxes for the State of Utah.

Thanks for the help, I appreciate it. I will mail it just in case something comes up 20 years down the road. I just didnt feel like spending $50 at HR Block to ask one question hehe.


User currently offlineCaptOveur From , joined Dec 1969, posts, RR:
Reply 9, posted (7 years 4 months 3 weeks 5 hours ago) and read 1372 times:

Quoting LOT767-300ER (Thread starter):
No money earned in Illinois.

I would still file the form showing no income earned there. You still have a DL and everything there indicating you might return, and you did get the tax form. If you are changing your residency to Florida it would be wise to switch to a Florida DL pretty quick.

In fact, strict interpretation of the laws says you need a new DL if you are going to be living there longer than I think it is 30 days. Not too many people get bent out of shape over it if you are a student or something though.

Point is, I would file the form, then if you get one next year I think you would be fine not to, you already showed you weren't earning income there. The easier you make the paper trail for the tax people the easier your life will be in the event of an audit.


User currently offlineBCAInfoSys From , joined Dec 1969, posts, RR:
Reply 10, posted (7 years 4 months 3 weeks 5 hours ago) and read 1367 times:

Quoting LOT767-300ER (Thread starter):
However I did not get a Illinois State Tax Return form



Quoting CaptOveur (Reply 9):
and you did get the tax form

I think you misread it Capt. He did not get any forms from Illinois; partly because they're not expecting him to file. I work quite closely with the auditors here and so I asked the head Auditor for the state about this scenario and he just laughed. State revenue agencies have a lot bigger fish to fry then a student living out of state who had no taxable income anyway. He would never get audited in a million years. He can file if it will make him feel better; but it will have precisely ZERO impact on anything, ever. I would've saved myself the time and stress about it.


User currently offlineCaptOveur From , joined Dec 1969, posts, RR:
Reply 11, posted (7 years 4 months 3 weeks 5 hours ago) and read 1367 times:

Oops.. I did misread it.. It is too early in my morning to be thinking.

If you didn't get anything, then yeah, don't worry about it.

Audit monkeys really don't care who they fuck with though. If they think they can squeeze a dime they will audit you.


User currently offlineBCAInfoSys From , joined Dec 1969, posts, RR:
Reply 12, posted (7 years 4 months 3 weeks 4 hours ago) and read 1362 times:

Quoting CaptOveur (Reply 11):
Audit monkeys really don't care who they fuck with though. If they think they can squeeze a dime they will audit you.

It's all about ROI (how much potential revenue they could recapture given how much time they invest in an audit). Why would they waste their time on someone with low AGI when there are PLENTY of audit candidates with higher AGI and a better probability of finding mistakes? Someone who has an AGI of $350,000 and is claiming all sorts of rare deductions is a lot more likely to have made audit-worthy mistakes then a college student who maybe made $15,000 last year. Not to mention there are audit candidates which are found through Discovery; candidates who are flagrantly committing tax fraud. Believe me; he would never get an audit. Never in a million years.

Besides, Florida is too busy worrying about Wesley Snipes.  Silly

[Edited 2007-03-08 04:09:42]

User currently offlineTPAnx From United States of America, joined Aug 2005, 1021 posts, RR: 0
Reply 13, posted (7 years 4 months 3 weeks 3 hours ago) and read 1343 times:

Quoting BCAInfoSys (Reply 12):
Florida is too busy worrying about Wesley Snipes

Ah..that's a federal case..not Florida's , though the indictment was issued in Tampa..
TPAnx



I read the news today..oh boy
User currently offlineAC777LR From Canada, joined Apr 2006, 487 posts, RR: 41
Reply 14, posted (7 years 4 months 3 weeks 3 hours ago) and read 1339 times:



heres one for ya, from Canada.



Member since April 2000
User currently offlineBCAInfoSys From , joined Dec 1969, posts, RR:
Reply 15, posted (7 years 4 months 2 weeks 1 day 4 hours ago) and read 1268 times:

Quoting AC777LR (Reply 14):
heres one for ya, from Canada.

Want to know what's sad? My company just got the contract to redo the entire revenue/tax system for Ontario. So I am in part one of the sick S.o.B.'s that continues the tax torment you all suffer up there. Oh well, at least I'm getting paid for it!  Wink


User currently offlineNeilalp From United States of America, joined Apr 2000, 1034 posts, RR: 1
Reply 16, posted (7 years 4 months 2 weeks 1 day 3 hours ago) and read 1259 times:

BCAInfoSys,

What about earning money in a state that has state taxes, but being a resident of another state. The states aren't in a reciprical agreement. As the other state was out of the Great Lakes region (for me). I claim state taxes with the first state and then claim taxes paid to another state in my home state correct? So i don't get taxed twice...

I was trying to figure this out by reading online.

Thanks for any info you can provide


User currently offlineL-188 From United States of America, joined Jul 1999, 29791 posts, RR: 58
Reply 17, posted (7 years 4 months 2 weeks 1 day 3 hours ago) and read 1256 times:

You guys might want to be careful with this.

There are some horror stories about California going after people who are residents with out of state wages.



OBAMA-WORST PRESIDENT EVER....Even SKOORB would be better.
User currently offlineJ_Hallgren From United States of America, joined Jun 2000, 1507 posts, RR: 0
Reply 18, posted (7 years 4 months 2 weeks 1 day 2 hours ago) and read 1247 times:

FWIW, I'm a legal resident of FL, so no state tax, but I get rental income from property in MA, so I have to file a non-resident MA return and pay MA tax on just that rental income...

The people who have the real problem are those who travel and earn income in many different states, as they typically have to file returns in multiple states.

Also having issues are those retired to FL but get a company pension from, let's say, NY...NY wants tax on that pension as it was based on income earned in NY.



COBOL - Not a dead language yet!
User currently offlinePope From , joined Dec 1969, posts, RR:
Reply 19, posted (7 years 4 months 2 weeks 19 hours ago) and read 1220 times:

Quoting LOT767-300ER (Thread starter):
I am in college in Florida most of the year (9 months out of 12) and I work in Florida (and my work address is a Florida one which is not a PO Box but a normal address where I live) but my drivers license is from Illinois and car is is registered in Illinois. However I did not get a Illinois State Tax Return form (and FL does not have a state income tax) so it is rather puzzling.

It seems to me that you should just get a Florida's driver's license and have the car titled in FL. Problem solved.


User currently offlineBCAInfoSys From , joined Dec 1969, posts, RR:
Reply 20, posted (7 years 4 months 2 weeks 18 hours ago) and read 1208 times:

Quoting Neilalp (Reply 16):
What about earning money in a state that has state taxes, but being a resident of another state. The states aren't in a reciprical agreement. As the other state was out of the Great Lakes region (for me). I claim state taxes with the first state and then claim taxes paid to another state in my home state correct? So i don't get taxed twice...

As I stated before, your residency really doesn't mean squat, it's about where you earned the money. State where income is earned in = state where taxes should be paid. The line on the return for taxes paid to another state is a generally a deduction. It allows you to deduct the amount of the taxes paid to another state so you're not taxed on that income in the other state. No sense in paying tax on taxes right?

So yes, file a return in State A as a part-year resident, claiming the taxes paid to State B on the return as a deduction. File the return with State B also as a part-year resident. You should be good to go.


User currently offlineJfkspotter From United States of America, joined Jan 2001, 448 posts, RR: 7
Reply 21, posted (7 years 4 months 2 weeks 17 hours ago) and read 1191 times:

Quoting CaptOveur (Reply 9):
In fact, strict interpretation of the laws says you need a new DL if you are going to be living there longer than I think it is 30 days. Not too many people get bent out of shape over it if you are a student or something though.

Actually, one of the exceptions to this rule is students attending college in the state.


User currently offlineDisruptivehair From United Kingdom, joined Mar 2007, 598 posts, RR: 0
Reply 22, posted (7 years 4 months 2 weeks 17 hours ago) and read 1190 times:

My advice would be to consult an accountant. You don't want trouble with the IRS.

Reading this makes me glad I'm from Texas, which has no state income tax. YEE HAW!


User currently offlineBCAInfoSys From , joined Dec 1969, posts, RR:
Reply 23, posted (7 years 4 months 2 weeks 17 hours ago) and read 1182 times:

Quoting Disruptivehair (Reply 22):
My advice would be to consult an accountant. You don't want trouble with the IRS.

Consulting an accountant is always a good idea; but this has nothing to do with the IRS! This has to do with the respective state governments.


User currently offlineDisruptivehair From United Kingdom, joined Mar 2007, 598 posts, RR: 0
Reply 24, posted (7 years 4 months 2 weeks 17 hours ago) and read 1177 times:

Quoting BCAInfoSys (Reply 23):
Consulting an accountant is always a good idea; but this has nothing to do with the IRS! This has to do with the respective state governments.

Don't want to get in trouble with them either.  cutie 

Again, makes me glad TX has no state income tax. Wooooooooo!

Y'know what pisses me off though...I've lived abroad since 2001 and I still have to file income tax returns with the IRS. WHY?


25 LOT767-300ER : Not only do I not want a FL DL and Car title here I cant. My insurance policy is under my parents in Illinois that strictly states all cars must be r
26 Post contains images Misbeehavin : I ended up with 14 W2's this year!
27 Post contains images Boeing4ever : Ok, so, I have residency in IL. I worked into TX last summer. Now does that mean I pay taxes to IL? Should be no from what I'm reading here. I have a
28 LOT767-300ER : Im pretty sure it would have been wise to change your paycheck address to IL. I would think that you would have to pay tax to Blag the crooked crack.
29 MaidensGator : Except if he pays tax to a state it's deductible for the IRS.... Is that anything like "sort of pregnant".... Getting caught "sort of lying" to your
30 LOT767-300ER : Probably not. Its not a lie, the car is not the main vehicle on the policy. Insurance company knows that I go to school here.
31 Post contains images Boeing4ever : Didn't have one at the time since I had to rent it and the move in was admittadly kinda unorganized since I got the job on short notice and couldn't
32 MaidensGator : That's no problem then. I've just seen so many insurance companies deny coverage because of "material misrepresentations" on the application....
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