Last updated on April 2nd, 2024 at 01:07 pm
If you’re not eligible for a Social Security number, you can still comply with federal and Illinois state tax law by filing your returns with an Individual Taxpayer Identification Number (ITIN).
The IRS assigns these unique nine-digit numbers to identify taxpayers in their system, and IDOR also uses them when processing returns for Illinois state taxes.
This Remitly guide will teach you how to file your Illinois taxes with an ITIN and also explain how to apply for an ITIN in Illinois.
How to file your Illinois taxes with an ITIN
Illinois taxes fund various programs and infrastructure projects, some of which benefit all state residents. As a result, Illinois tax law generally requires noncitizens who live or work in the state to pay income taxes. Those who don’t can face steep fines and even criminal charges.
Fortunately, filing your Illinois state tax return with an ITIN is a fairly straightforward process, and assistance is available for those who need it. Read on to learn how to get your state taxes filed.
Illinois tax filing requirements for ITIN holders
In Illinois, where you live and work, and not your immigration status, determines who needs to pay income taxes. The state establishes separate rules for residents, part-year residents, and nonresidents. Let’s dig into the requirements for each category.
Residents
If you were domiciled in Illinois throughout the entire tax year, you will typically qualify as an Illinois resident. To be domiciled in the state means that your permanent residence was in Illinois. A permanent residence can be a place you own, rent, or live in for free. Illinois will also consider you domiciled in the state if you intend to return to a permanent residence after a temporary absence, such as going out of state to attend school or overseas to serve in the military.
As an Illinois resident, you will need to file a state income tax return if any of the following are true:
- You filed a federal income tax return.
- You didn’t file a federal income tax return, and one of the following is true:
- You’re single, can’t be claimed as a dependent on someone else’s tax return, and earned more than $2,425 during the 2023 tax year.
- You’re single, can be claimed as a dependent on someone else’s tax return, and earned more than $0 during the 2023 tax year.
- You’re married but file your taxes individually and earned more than $2,425 during the 2023 tax year.
- You’re married, file your taxes jointly, and earned more than $3,425 during the 2023 tax year.
- You need to claim a refund of Illinois income tax withheld from your pay or estimated tax payments that you made during 2023.
Residents who work out of state
If you are an Illinois resident who worked in Iowa, Kentucky, Michigan, or Wisconsin and meet the requirements outlined above, you’ll claim the wages that you earned while working in these states on your Illinois tax return. These four states have a reciprocal agreement with Illinois, so you won’t usually be required to file a tax return there.
If you are an Illinois resident and worked in a state other than Iowa, Kentucky, Michigan, or Wisconsin, you will usually need to file a nonresident tax return in that state. Contact a knowledgeable tax professional or the IDOR for advice on filing your Illinois state tax return as a resident of Illinois working in a nonreciprocal state.
Part-year residents
If you moved to Illinois and established a permanent residence or relocated your permanent residence from Illinois to another state during the tax year, you’re usually considered a part-year resident.
As a part-year resident, you must typically file an Illinois state tax return if any of the following are true:
- You earned income while living in Illinois.
- You earned income from a source in Illinois while living in another state. For example, you would need to file if you rented out a property located in Illinois.
- You need to claim a refund of Illinois income tax withheld from your pay.
Nonresidents
If you don’t have a permanent residence in Illinois but worked there or earned income from a source in the state, you’re usually classified as a nonresident.
As a nonresident, you’ll likely need to file an Illinois tax return if any of the following are true:
- You earned income from employment or another source in Illinois in excess of the amounts listed in the residents section above.
- You need to claim a refund of Illinois income tax withheld from your pay.
Nonresident aliens
Nonresident aliens are individuals who don’t hold green cards and didn’t have a substantial presence in the U.S. during the tax year. The IRS considers you to have a substantial presence if all of the following are true:
- You lived in the US for at least 31 days during the past year.
- You lived in the US for at least 181 days during the past 3 years. When counting days, include:
- All the days that you were present in the U.S. during the past year
- One-third of the days that you were present in the U.S. the previous year
- One-sixth of the days that you were present in the U.S. the year before that
You are likely a nonresident alien if you don’t pass the substantial presence test and don’t have a green card. Visit this site to learn about your federal tax filing requirements.
Nonresident aliens with income sources in Illinois who are required to file a federal tax return must typically also file an Illinois state tax return.
Getting ready to file
To prepare to file your Illinois taxes, gather the following documents:
- Your previous year’s Illinois State tax return, if you have one
- Your ITIN number (and the ITIN numbers of your spouse and dependents, if applicable)
- Your driver’s license or state-issued ID (and your spouse’s if you’re married and filing jointly) if you wish to file your taxes electronically
- Your current year’s federal tax return. Learn more about filing a federal tax return by checking out our immigrant’s guide on where to file taxes.
- W-2 and 1099 forms
- Your property number and the amount of property taxes you paid, if you own property
- Receipts for qualified moving and education expenses, if applicable
- Statements for 529 savings account contributions, if applicable
- Statements detailing the amount of U.S. interest you earned during the year, if applicable
- Your routing and bank account numbers if you wish to have a refund directly deposited or to pay your taxes via direct debit
What form to file
To file your Illinois income tax return, complete Form IL-1040. If you’re a nonresident or a part-year resident, you’ll also complete Schedule NR.
When completing tax forms, enter your ITIN in any box or line requesting your Social Security number. For example, you will enter your ITIN in the Social Security number box under Section A of Form IL-1040.
Filing options
There are four main ways to file your Illinois state tax return:
- By mail: One option is to download the necessary forms and return them to IDOR via U.S. mail. You can find the address to send your forms to in the instructions for Form IL-1040.
- Illinois e-file: Illinois allows anyone who needs to file a state tax return to use their free electronic system. You can get started here.
- Third-party e-file: Approved third-party software can allow you to prepare and file your tax return in exchange for a fee. Visit this page for a current list of IDOR-approved third-party software programs.
- Tax professional: A knowledgeable tax professional can help you complete your Illinois state tax return. Once your return is complete, they will usually either electronically file your taxes for you or mail in the paperwork for you. The IRS offers a search tool to help you find tax professionals near you.
If you need assistance filing your Illinois state taxes, talk to an experienced tax professional or contact the IDOR.
Eligibility requirements for getting an ITIN
Both federal and Illinois state government agencies need to be able to quickly identify individuals when they request services, make payments, and apply for various programs and licenses.
For citizens and some noncitizens, Social Security numbers provide a solution. The Social Security Administration assigns these unique nine-digit numbers to eligible individuals, and many other government agencies rely on them for identification purposes.
The Internal Revenue Service and the Illinois Department of Revenue (IDOR) are among them, so if you have a Social Security number, you’ll need to provide it when you file your federal and Illinois income tax returns.
To qualify for an ITIN, you must meet the following requirements:
- You’re not eligible for a Social Security number and
- You have a reason for needing a tax identification number and
- One of the following is true:
- You’re a nonresident alien filing a federal tax return.
- You’re a U.S. resident alien filing a tax return.
- You are the spouse of a U.S. citizen, resident alien, or nonresident visa holder.
- You are a dependent of a U.S. citizen, resident alien, or nonresident visa holder.
- You’re a nonresident alien who needs to claim a tax treaty benefit.
- You’re a nonresident alien professor, researcher, or student filing a tax return or claiming an exemption.
The IRS provides an interview tool to help you determine if you’re eligible for an ITIN. Visit this page to use it.
How to apply for an ITIN
If you’re eligible for an ITIN, complete Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for one. When you’ve completed the form, you can mail it to the IRS at the address provided or drop it off in person at a Certifying Acceptance Agent or an IRS Taxpayer Assistance Center.
For more information about applying for an ITIN, check out our step-by-step guide to the process. Keep in mind that it may take the IRS up to 7 weeks to issue your ITIN. Be sure to apply early for your ITIN in time to file your Illinois state tax return.
Important 2024 tax deadlines for Illinois residents
The deadline for filing an Illinois income tax return for the 2023 tax year is April 15, 2024.
The state automatically grants a six-month extension for filing state returns. If you receive a federal extension for a longer period, the state will honor the IRS-set deadline. However, any taxes that you owe will remain due on April 15, 2024.
To avoid penalties and interest when taking advantage of an extension, complete Form IL-505-I, Automatic Extension Payment for Individuals, which you can access through MyTax Illinois.
More tax resources for Illinois
If you have questions about Illinois state tax law, rules, and regulations, help is available. Talk to a knowledgeable tax professional and check out these resources for assistance.
Illinois Department of Revenue resources page
The Illinois Department of Revenue resources hub for individuals provides quick links for filing your return, checking your refund status, and more. On this page, you’ll also find guides on special situations, such as filing your Illinois tax return for the first time.
Ladder Up
If you meet certain income requirements, you can use the Ladder Up program and receive free income tax preparation services. Visit the official website to learn about eligibility requirements and find out how to participate in the program.
Illinois State Library Tax Information
If you want to read federal or Illinois state tax laws, visit the Illinois State Library page, where you’ll find links to relevant statutes and regulations.
Understanding Taxes as an Immigrant in the U.S.
Find answers to some of the most frequently asked questions about taxes in the U.S. and how and why immigrants should file their taxes.