The credit paid to another state is only available if you're taxed on the same income. From your statements, it appears you were taxed only on the income you earned while a resident of that particular state.
- You stated that you have both IL and GA on your W-2. That means your employer taxed you IL state income tax while you were a resident of IL and GA state income tax while you were a resident of GA.
In regards to your husband, if he was a resident of GA the whole year, his W-2 should only have GA income tax withheld.
- If he worked for the GA company the whole year but lived in IL through October, he should also have IL and GA income tax withheld for the months in which he was a resident of each state.
- If he worked for the GA company the whole year and was charged GA income tax, yes, you qualify for the credit for the time he lived in IL.
Allocation means to assign income to the state you were living in when you earned it. We'll either ask you to separate the income you earned or to verify the allocation amounts we already calculated for you.
Allocating your income shouldn’t be too difficult, but it can involve some math.
You'll need to determine if the income you're allocating is earned or unearned, as these are handled differently:
- Earned income comes from employment, such as wages, salaries, tips, payment for services, and commissions
- Unearned income comes from non-employment sources, such as interest, dividends, capital gains, social security, and IRA distributions
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