• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

State Tax Withholding- Company based out of state

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Cosledneck

Junior Member
What is the name of your state (only U.S. law)? TX

I just started working here in Houston, TX (the state where I reside) for a company who's home office is in Illinois. All work has been and will be done here in Texas, a state with no state Income Tax. Looking over my pay stubs I see "State WH IL", which seems wrong to me as I live and work in Texas. Is this right? If so, do I have to file a State of Illinois Tax return? If I file a return for Illinois do I get all my money back? Or is this company just doing shady stuff hoping I won't notice?

Thanks in advance for the help and advice.
 
Last edited:


Cosledneck

Junior Member
Unfortunately, I haven't had a chance to ask them as they took a half day today. I didn't find out about the state taxes being withheld until I got home from work tonight (a full day for me...). They have direct deposit and some online pay stub viewing system that I have followed the instructions for but still am unable to log on and view the stubs. After relaying the difficulty with the system to them they sent me an Email with the stubs attached. Can they say anything but "Sorry, we'll get it fixed and send you your money" ? Seems like that's how it should go down, but I'm no expert.
 
Last edited:

anteater

Senior Member
It could be a simple mistake. And easily correctable.

(How large is this company? Number of employees? Geographical coverage? That sort of thing.)
 

Cosledneck

Junior Member
Probably less than 50 employees, most of them seem to work in Illinois. As far as I know, I seem to be one of the first few to be from Texas. Your responses seem to indicate they aren't supposed to be withholding the state taxes from my check. Is that what you are implying?
 
You're correct they should not have withheld Illinois state income taxes from your check. They made a mistake. Give them the opportunity to correct it.
 

davew128

Senior Member
As others stated, its obviously in error. However get it fixed now rather than later. If it ends up on your W-2, Illinois is going to give you a hard time about it since the form will say you had IL wages and make you PROVE you didn't work in IL.
 

Cosledneck

Junior Member
Thanks everyone for the replies. I will hopefully be able to get it corrected without much trouble. That being said, I am a commission employee and my first two paychecks were short, so who knows how hard it will be for them to make this state withholding situation right.
 

LdiJ

Senior Member
Thanks everyone for the replies. I will hopefully be able to get it corrected without much trouble. That being said, I am a commission employee and my first two paychecks were short, so who knows how hard it will be for them to make this state withholding situation right.
It won't be difficult at all for them as long as they get it fixed before the end of the year. Keep on them!
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top