Moved from Indiana to Illinois Mid-Year: Which State Tax Returns Do You File?
Answer
Both states want a return, but neither taxes the whole year. Moving from Indiana to Illinois splits the tax year at the date your residency changed: a Indiana part-year return covers everything before it, a Illinois part-year return everything after. Income is assigned by when it was received.
Last verified
Part-year returns are designed so that neither state taxes the whole year. The risk is not double taxation by default; it is misassigning income received near the move date, and losing the proration on deductions and credits.
What you file
- 1Part-year return · IndianaForm IT-40PNR
File a Indiana part-year return covering the months you lived in Indiana. A part-year resident of Indiana reports the income received while a Indiana resident, plus any Indiana-source income received during the rest of the year, and prorates the deductions and credits to the residency period.
- 2Part-year return · IllinoisForm IL-1040 with Schedule NR
File a Illinois part-year return covering the months you lived in Illinois. A part-year resident of Illinois reports the income received while a Illinois resident, plus any Illinois-source income received during the rest of the year, and prorates the deductions and credits to the residency period.
The two states, side by side
| Indiana | Illinois | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — flat |
| Reciprocity partners | 5 (Form WH-47) | 4 (Form IL-W-5-NR) |
| Convenience rule | No | No |
| Nonresident return | Form IT-40PNR | Form IL-1040 with Schedule NR |
| Part-year return | Form IT-40PNR | Form IL-1040 with Schedule NR |
| Credit for other-state tax | Schedule 6 (Form IT-40PNR) | Schedule CR |
| Nonresident safe harbour | None published | 30 days |
| Local income tax | Yes | No |
| Revenue department | Indiana Department of Revenue | Illinois Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Illinois and working in Indiana gives:Two part-year returns.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: Indiana → IllinoisBoth states — credit offsets the double tax
- Remote worker: Indiana → IllinoisHome state only
- 1099 contractor: Indiana → IllinoisHome state, plus the client state if you work there
Other Indiana pairs
Questions people actually ask
I moved from Indiana to Illinois mid-year. Do I have to file in both states?
Both states want a return, but neither taxes the whole year. Moving from Indiana to Illinois splits the tax year at the date your residency changed: a Indiana part-year return covers everything before it, a Illinois part-year return everything after. Income is assigned by when it was received.
How do I split my income between Indiana and Illinois?
By when you received it, measured against the date your domicile actually changed. Income received while you were a Indiana resident belongs on the Indiana return and income received afterwards on the Illinois return, with each state prorating your deductions, exemptions and credits to its own part of the year. Keep evidence of the move date — a lease, a closing statement, a licence issue date.
How current is this?
The Indiana and Illinois rules on this page were last checked against Indiana Department of Revenue and Illinois Department of Revenue on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Indiana Department of Revenue — individual income taxaccessed 2026-08-07
- Illinois Department of Revenue — individual income taxaccessed 2026-08-07