Author Topic: How much hassle to correct apportionment between states?  (Read 507 times)

YttriumNitrate

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How much hassle to correct apportionment between states?
« on: July 16, 2017, 10:19:45 AM »
Hello, my situation is that I live in Indiana but work in Illinois, telecommuting about a third of the time. With Illinois raising their income tax rates a few weeks ago I did some checking and realized I could have been apportioning about a third of my income to Indiana. Going forward I will definitely be doing this since Illinois' income tax rate is now about 50% higher than Indiana's, but I am also considering refiling my previous years' returns because Illinois' old rate was slightly higher and I could probably net a few hundred dollars.

However, the process seems like a major pain in the ass involving getting corrected W2s, refiling returns in two states, possibly writing a small check to Indiana and hopefully getting a larger check back from Illinois (not know for being speedy with payments). If anyone else has gone through this process, I would appreciate some insight on how much of a time commitment I'm looking at if I decide to go after the money from the states.

SeattleCPA

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Re: How much hassle to correct apportionment between states?
« Reply #1 on: July 17, 2017, 10:58:34 AM »
It's not hard with professional tax software... but it's probably beyond "do-it-yourself"...

The other thing is that state of residence will still get to tax income you earn in other states ... but you'll probably get a credit for taxes paid to nonresident states.

E.g., the taxes you pay state of California may reduce the taxes you pay IL on the California income.
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YttriumNitrate

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Re: How much hassle to correct apportionment between states?
« Reply #2 on: July 18, 2017, 08:18:38 AM »
Thanks SeattleCPA!

It sounds like it can be done, but probably would require hiring someone who knows what they are doing, which would mostly offset the bigger refund.

SeattleCPA

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Re: How much hassle to correct apportionment between states?
« Reply #3 on: July 22, 2017, 03:30:50 PM »
Thanks SeattleCPA!

It sounds like it can be done, but probably would require hiring someone who knows what they are doing, which would mostly offset the bigger refund.

Accounting costs money... and you don't want to spend a dollar to chase a nickel.
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