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Thread: Live in Chicago, but paying taxes in Philly

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    Default Live in Chicago, but paying taxes in Philly

    Hi everyone,

    I just got hired in philadelphia. Dancing there requires a business tax license. Could someone give me an idea of how much i be paying for taxes there? My legal address is Chicago (does it matters?). Do they tax me additionally for where I live on? Im really confused, please help!. thank you

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    Default Re: Live in Chicago, but paying taxes in Philly

    While your personal 'home' is in Illinois, your 'business' is located in Philly as soon as you obtain the business license. As such, you'll wind up having to pay the Philly 'wage tax' plus PA state income tax on your earnings that originate in Philly. Assuming that you don't have a corporation or LLC set up, you'll have to file a return with the Philly income tax agency, plus file a non-resident individual PA state tax return, plus file a resident individual IL tax return. You'll wind up paying 1.5% tax to the city of Philly, plus 3% to the state of PA. However, you can claim a tax credit on your Illinois state tax return for taxes paid outside of IL, which given a 3% IL income tax rate should more or less 'wash' against the 3% PA state income tax rate.

    This actually isn't all that unusual for travelling dancers ! One year I wound up having to file tax returns with 6 different states and two different cities ! The easiest way to do this is to purchase a full feature tax preparation program like Turbo Tax ( for home and business ), which can spit out all of the necessary forms and which can take care of the other state tax credits on your home state tax return.

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