A relative of mine died last year, and I received an inheritance that consisted of interest, dividends, capital gains, and "annuities, royalties, and other nonpassive income or loss before directly apportioned deductions". However, she lived in a different state than me; I live in Maryland and she lived in Illinois, with the trust matching her state.
I received K-1 and K-1-T forms to file my taxes with, and while doing my federal taxes I used Turbotax's step-by-step mode to input the K-1 form. However, while doing my state returns, I realized that Turbotax had applied all of the various types of income to the Maryland return instead of the Illinois one.
Is that supposed to happen? I'm a bit lost on how this kind of inter-state taxation works, so I'd like some help on what I need to do, if anything.
