1. Are you using the Online product or the CD/download product?
I am using the CD, Premier version.
2. When you say, "When filling out the information for my Illinois return I can enter the amount withheld but when I move to the next item the amount I entered is removed from the box." Where is this? In the W-2G interview or somewhere in the Illinois state interview? Please enter details (there aren't that many screens). Also, on exactly what screen is the amount in the box removed?
I am on the STATE TAXES tab.
Under the sub heading "Personal, home and family credits". I am making the entry on the line titled:
"Credit for taxes paid to another state". Right now there is $0 in front of the box with the label Revisit in it. The box is colored grey. If I click on the Revisit button I am taken to a page with the title "Other States Income and Tax Summary". The MS line contains the correct income and tax amount for MS.
When I click on the Done button I a taken to a page with the header "Income from outside Illinois". This page says to Enter income from outside Illinois below. It has a table with two columns titled Total Amount and Other State Amount. There are four lines.
Taxable interest income
Ordinary dividends
Capital gains (or losses)
Other income
There are amounts filled on each line under the Total Amount heading. Under the Other State Amount heading there are blank boxes. There is a note that says: Do not include gambling winnings except winnings from other states lottery, then it talks about NOL. My gambling winnings are from slots not lotto so I have not filled out the boxes. When I click on Continue I am taken to a page titled "Take a look at Illinois credits and taxes". Down under the sub title "Personal, home and family credits", the line for Credit for taxes paid to another state" again has the $0 sitting in front of the grey box with the title Revisit,
After going through the above procedure try to completely answer your question I decided to review the Il return to be sure I did not get the credit I came across Form W-2g. The Spouse's W-2g was checked. My wife was the winner. The state income tax withheld box contained the correct amount of MS winnings.
Reviewing the IL1040 I see line 15 "Income tax paid to another while an Illinois resident" is 0.
I hope this answers your questions.
