gur1
Level 2

Double taxation in state tax on Foreign Income

  • To avoid double taxation in a federal return we can claim a foreign tax credit on USA federal return
  • To avoid double taxation on state tax returns what is the best way? I am not sure if Illinois allows a foreign tax credit

My spouse was not working when she was a resident of IL. In July 2021 she went to CANADA.

 

Will below help to avoid double taxation on my wife's CANDIAN salary? If yes ,How to file federal tax as married filing jointly and state tax as married filing single using Turbo Tax online 

 

 

  • Federal tax - married filing jointly. Avoid double taxation by the foreign tax credit 
  • State tax -Illinois -Married filing separately

    1.    My state return as a resident 

    2.     My wife return as a part-time resident -She was in IL till June,22,2021. She was not earning.  This way her Candian income is not taxed by the IL state