DianeW777
Expert Alumni

State tax filing

The fact is the Illinois (IL) return is taxing you on less income because even as a nonresident you are entitled to an exemption allowance. In that regard, Indiana (IN) is not going to give you a credit for taxes paid to IL for any amount of income that is not taxed by IL.  The fact IN doesn't provide the same exemption allowance provides no difference in calculations. 

 

The credit is the lesser of what was actually paid or the tax the resident state would have charged on the same amount of income. IN Schedule 6 is doing the correct calculations.

 

From the instructions, on the page you cited: If you were an Indiana resident during the tax year and had income from any of the states listed in Group A below, you should first find out what the other state’s rules are concerning the taxation of your income.

 

@Mikes20222022 

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