Taxes when moving from IL to WI

[steven]

I am moving from Illinois to Wisconsin, how should I approach to this tax-wise? What do I need to do besides telling my employer to update my W2?

[sunset]

All you need to do is to tell your employer and sign a new state witholdings form. Note, even if you move mid-year, you do not necessarily need to change your residency status (I am assuming you just move over the border and keep working for the same employer).

If that is the case, it is best to stay resident of your old state until 12/31 and change the residency as of 1/1? Why? It makes your taxes whole lot easier!! In this case, you file return for the whole year in the old state and then a new return the next year in the new state. If you change your residency mid-year, you have to file a lot of additional paperwork and 1040NR in both states.

[atari]

I can't recall the exact name of the form, but there is one attachment to your IL/WI 1040 where you have to answer a bunch of questions about your residency. They ask questions such as "Where do you work", "Where do you live", etc. They ask these questions to determine when and where you were a resident and when your residency started.

Basically, you need to fill out IL1040, WI1040, Schedule NR, and that form I mentioned.

Schedule NR
http://revenue.state.il.us/taxforms/Incm2008/Individual/IL-1040-NR.pdf

Schedule NR IL-1040 Instructions
http://www.revenue.state.il.us/taxforms/incm2002/ind/il1040nr.pdf

Let us know if you need more help.

[danisara]

Hey, you need to notify IRS of your new address too. See here:

Address change notify IRS

Hope it helps.

[TanyVady73]

Unfortunately we owe taxes and dont have enough money on hand to pay.  I know its not a good idea to add to your credit card, but should we use are card to pay or try to work with IRS to make payments?

[sunset]

Unfortunately we owe taxes and dont have enough money on hand to pay.  I know its not a good idea to add to your credit card, but should we use are card to pay or try to work with IRS to make payments?

For FED taxes, you can submit form 4868 (http://www.irs.gov/pub/irs-pdf/f4868.pdf) to ask for automatic 6 month extension. If you do not pay the amount due by the regular due date, you will owe interest. You may also be charged penalties. You do not have to explain why you are asking for the extension. Whether this option is financially more affordable depends on your interest rate on your credit card. You will have to do some simple math there (compare the interest + penalties to the interest you pay on your credit card). See the link I provided and read instructions for the form. State taxes usually offer similar option.