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I can't speak to the specifics of CA and IL tax regulations, but here is the general concept. The state where you live taxes you on all income from whatever source. The state where you work taxes you on all income you earn in that state. Usually, your home state will give you a credit for some or all of the taxes paid to the source state. More often than not, you pay more in total taxes when you live and work in different states than you do when you live and work in the same state. There is no limit to how long you can continue this.

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