Do I file Iowa or Illinois State tax return?
You are required to file an Illinois return and pay the Illinois tax that would have been withheld if you had given your employer your correct permanent address when you become a permanent resident of Illinois. You may or may not be required to file an Iowa return because you had income while a permanent resident of Iowa. Even if you are not required, it would be wise to file an Iowa return so as to receive a refund of the Iowa taxes that were withheld. For income received for work performed in Illinois while a permanent resident of Iowa, you are either required to pay Illinois tax or required to pay Iowa tax (not sure which). For income received for work performed in Illinois while a permanent resident of Illinois and neither a permanent resident of Iowa nor living in Iowa, you are required to pay Illinois tax and neither required not permitted to pay Iowa tax. You are also required to give your employer a new W-2 with your correct permanent address.
