Do I owe Illinois Department of Revenue money??

I just got a notification in the mail that my state tax forms were filed incorrectly. If I agree to the money due, I owe Illinois an additional $821.36 (which includes late payment and interest). But if I disagree, attach my W-2 as proof and send it in. However, I don't know if I'm right or wrong...

My W-2 form has $739.34 in box 17, called State Income Tax. Does that mean I owe them that money or are they wrong in making that change?

I don't understand taxes very well...there's gotta be a better system then this.

Thanks for your answers!

10 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    Go back to whoever prepared your return and show them the notice. Box 17 of your W-2 is how much was withheld from your paycheck during the year and was paid to the state (I'm assuming that it was Illinois). Illinois should have that information, but that might not have been enough to cover your Illinois tax liability. I'm guessing though since you say you don't understand taxes very well that you had someone prepare your tax return. Take the notice to them and show it to them, they should be able to help you.

  • 1 decade ago

    The notice from Illinois must explain where they think an error occurred -that's the first thing you should find out about. The tax dept will answer your questions by phone and you probably will need to send them the W-2 but be sure to keep a copy of it. You should also have your copy of the return that was filed (hopefully you kept one). Your question here may not give us enough information to answer correctly-where do you live, where did you work,are taxes due because you had other income or too little withheld, etc.

  • 1 decade ago

    What seems to have happened is that Illinois received information from the IRS showing your income. Illinois does not have your W-2, so it is assuming that you had zero withholding. This apparently is because you made some kind of error on your return.

    Send in the W-2 as proof of your withholding. Do not make any payment until you hear further from them. Keep a copy of that letter and of course your W-2.

  • Judy
    Lv 7
    1 decade ago

    Box 17 is state income tax withheld. Do you work in IL and live in IL, so there's no chance it went to some other state? If so, then you're probably OK, and just have to send them the W-2 copy. Something seems strange though that they wouldn't know they had it already. Does it say IL in box 15? Is it possible you just forgot to attach your W-2 when you sent in your return?

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  • 1 decade ago

    As with all income taxes and W2 withholdings, the amount that is shown for State Income Tax is state income tax that you had paid to the state. The state shown to the left of that amount is the state to which tnat amount would be claimed. For example, if it is illinois, does that mean necessarily that you owe them that much; the answer is no. It just means that is what was withheld from your wages for that state. The question is not the amount that is included in the box, but what the amount that is due on your state of illinois return. This is based on adjusted federal income levels and then you calculate the amounts. If prepared incorrectly and most likely there is sufficient reason based on your notice to say that it was. The answer, amend the return, income the W2's and calculate what is due. Attach copy of Federal return and otherwise.

    We prepare taxes for a variety of clients, including many corporate returns, and may assist you as we currently have accounts in over 25% of the United States. Check out our site and there you can find many answers and also links to state sites and otherwise. Do not disregard the notice. Interest and penalty may accrue and you dont' want that. PS? who did the return? Could it be so that your federal return is also incorrect? Will they send you a notice for that also. It could be in process or by chance may just be correct.

    I would not worry about amending, I mean if you must, then you must. That is the way it works. Ufortunately at times, you may owe additional taxes. And then at times you may not. It depends and each situation is different. Some states are not too bad, some states are hard to deal with. Some states just are too lenient. As I said it depends ad every situation is different.

    Based on your state withholdings we assume you are in the lower income tax brackets as that is not a large amount of state withholding. If the return is prepared wrong and it may very well be so, then you may think of changing your exemptions or having an additional amount taken out of your checks everytime. This is easy to do. Just ask employer for W4 and make the changes. By law they are required to comply, though many may think it is a pain. It is up to you, not someone else to do what you beleive is right for your tax situation. Employers who state otherwise, may not wish to pay the tax to the state or otherwise; stay away from these people. Legitimate employers will not do so. Such as our firm and many others that we know about.

    The way it normally works is this way. Tax preparers, well those that are legitimate based companies that is, would not be necessarily held accountable for the additional tax due, as it is your liability but in many states they may be for any penalty for errors and such; the reason why many have E&O insurance (Errors and Ommissions). Even if for example a state does not require this or require in many cases them to pay for the interest whatever on the amounts many legitimate and professional firms, that is the key, will do so and ours is not any different.

    Dr. Albert Einstein noted that the most complex thing there is is the income taxes and in most instances this is a reality. Every situation differs and some sections of the IRC (internal revenue code) is even difficult for us to comprehend and we have been preparing taxes for many years and have been in accounting, myself personally for over 25 years.

    If you're not sure how to prepare them find someone by all means who can or you will most likely suffer heavily if you do not and make sure that someone is legitimate, not just someone who does this stuff on the side. Much like paralegals for example. You want to ensure that you have recourse if something seriously goes wrong. In such case, do your research.

    As I said every situation differs and don't let someone tell you or others they can save you money, whatever without even knowing the full picture. Run I tell you, run and don't look back with people like this.

    Check out our site below. You may call us at 1877-343-5147 toll free if you wish assistance.

    Thank you and regardless, as noted do not sit on the notice; it may very well be correct and in many cases; unfortunately and I do not like to say so, but many times there is good reason why they write them.

    Wayne Barney


    BC Business Services, Inc.


  • Erika
    Lv 4
    4 years ago

    there isn't any thank you to tell in case you're perfect or incorrect from the information you supplied. field 17 on your w-2 is the quantity your corporation held out in direction of your taxes. likely they did not carry out adequate. you probable owe the further money, yet take your copies of your tax return to a tax expert or an accountant and that they may well be certain what you owe.

  • BruceN
    Lv 7
    1 decade ago

    I am guessing that they ask for the W-2 because they lost it (so they are charging you the $739.34 + interest because they aren't sure whether it was really withheld).

    In any case, say that you disagree and send them the W-2.

    If you have the patience, you can call them and confirm this before you mail the letter.

    Source(s): Tax Accountant
  • 5 years ago

    Can I get a copy of my 2014 Illinois 1040 on the net for free?

  • 1 decade ago

    You should seek help from an income tax preparer. It is not clear to me what you mean.

  • 4 years ago

    That's a tricky question..

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