RaifH
Expert Alumni

State tax filing

Yes, your understanding is correct. You cannot use your capital loss carryover to offset your nonresident wages. 

 

Your wages are considered IL income, but since it is also taxed by NY you receive a credit for the tax paid to NY which probably results in no liability to IL. If there are no other forms of IL-sourced income, then your carryover credit for the state would be wasted. 

View solution in original post