I live in IL and work in KY. Which address should I use on my W2?

Question

I'm not sure how to fill out my W2 form. If I live in IL and work in KY which address do I use? How do I file my state income tax?

Answer 1

i think its Illinois.. But you might want to ask a tax advisor =) just to make sure

Answer 2

You use your mailing address.

Answer 3

Your tax home is IL so that's what you use.  You are referring to your W-4, I assume, since your employer is the one who generates the Form W-2 at the end of the year.

IL has a reciprocity agreement with KY so your KY wages will NOT be taxed in KY, only IL.  Make SURE that your employer does not withhold KY income taxes.  They may or may not withhold IL taxes and you should have them do so if possible.  If they don't, you'll have to make quarterly estimated payments to IL to avoid penalties when you file your IL return.

Answer 4

You list the address for the place you live-Illinois.  You will pay state taxes first to KY and the balance (if IL's percentage is more) to IL.

Answer 5

You fill out a W-4 which is used to complete your W-2 at year end by your employer.

You use your home address, your residence.  You will have to file both KY and IL tax returns, with some credits for taxes paid to other.

Answer 6

You normally do not fill out your own W-2 form - your employer fills that out.  

You fill out a W-4 form to tell your employer how much to withhold from your paycheck.  You would use the address where you live.

When you fill out the 1040 form, you would also use the address where you live.

Not sure how IL and KY deal with the live in one state and work in another state situation.  You will have to look for their state web sites and find the instructions for their tax forms.  

If you live in Michigan and work in Ohio, you pay Michigan taxes because that is where you live and Michigan and Ohio have a reciprocal agreement.  Some other states have the same arrangement.  But other states require you to file in both states and one state will give your credit for the taxes paid in the other state.

Answer 7

I'm a CPA/Tax Preparer, and I can tell you that you will use your Illinois address for filing your return. You will also need to file an Illinois state tax return, and possibly a non-resident KY state tax return as well (I can't remember if Kentucky has a state income tax or not). If you do have to file a KY tax return, you'll get a credit from Illinois for the tax you have to pay to KY, but it will be the lesser of the KY tax, or the IL tax on the same amount of income.