I work in Illinois and live in Illinois but my company is in CA. What do I need to do for taxes?
Monday, March 1st, 2010I am a consultant working for a company that exists in California. The client is in illinois and I also live in Illinois. My W-2 from my company shows California as the state taking taxes. How do I prepare my tax return? Do i need to report taxes to California?
Is it a temporary assignment for a set period of one year or less? In other words do you have a residence in CA and are your living expenses in IL deductible. See http://www.irs.gov/publications/p463/ch01.html#en_US_publink100033764
If you live and work in IL for an indefinite period of time (or over a year), you should tell your employer to withhold IL tax. IL Dept of Revenue http://www.revenue.state.il.us/
If it is too late for your employer to correct your W-2 you would need to file non-resident in CA to get your CA withholding back (hope you don’t get an IOU) http://www.ftb.ca.gov/forms/2008/index.shtml
Which forms you file for each state depend whether you lived in IL the entire year or moved here during the year.


Many southern Wisconsin residents woke up to an earthquake about 4 a.m. Wednesday.