I reside and pay taxes in Illinois. I have a client that is based in NY. I do work for this client in Chicago, where I live. Employer deducts NY State Income tax. (I am a freelance actor, but this particular employer is not 1099 income but regular W2 income.) Last year, I owed additional state taxes to NY. I would understand if the taxes I pay in NY essentially cancel out what I might owe for that income on my Illinois return, but why would I owe taxes on that income if taxes are deducted from every check? All the work is performed in Chicago, where I live. I am not working remotely. The company is based in NYC. Why would I owe additional NY taxes? Are they basing it on my total Illinois income, including my wife's?