Almost there. On your MO non-resident return exclude your wages and spouse's military wages only. Allocate the other income sources to MO.
Complete you MO non-resident return and take note of the income that was taxed and the actual income tax levied by MO. This will be used to claim the credit for taxes paid to another state on your resident IL return. If you do the non-resident return first TurboTax will transfer the amounts for you.
On your IL resident return there is no allocation. All income belongs to your resident state. Then, on your IL return claim the credit for taxes paid to another state to mitigate the double taxation by MO.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
