Unemployment - What State to File In?

@rowantree (1190)
United States
June 25, 2009 4:16pm CST
We live in Indiana but my husband works in Illinois. We have to pay State taxes for both states. So which state does he file unemployment with? He wants to file with Indiana because he says he has to pay taxes on the unemployment compensation he receives and Indiana's taxes are less than Illinois. I want him to file with Illinois because I don't believe you have to pay state taxes on unemployment compensation and I've been told Illinois pays more than Indiana does in terms of unemployment compensation. Does anyone in the US know whether or not you pay State taxes on unemployment? I already know you do have to pay Federal, but can't find anything that tells me about State. Thanks!
1 response
polachicago
@polachicago (19073)
• United States
26 Jun 09
I am not sure about taxes, but he will get more money in Illinois than Indiana. I think that the best is to call any tax office in Illinois for free consultation, they know the law.
rowantree
@rowantree (1190)
• United States
29 Jun 09
Thanks! I found out you have to pay State/Local taxes in Indiana, don't know about Illinois but I also found out that Illinois will pay a LOT more than Indiana will. Isn't that odd - Illinois will take into account how my children you have, while Indiana doesn't care.