Hello again - Thank you for the feedback and much appreciated.
I did do some additional research on this and purchased TT for states IA & NE.
So her IL base income (her Fed AGI) gets taxed as expected.
- She files an IA NR return and gets that refund, which in the end offsets the IL tax (in her pocketbook that is) she would owe, thus no tax credit applied on Schedule CR for that - correct?
- She also files an NE NR return and gets that refund however, TT for the IL filing requires me to enter the NE income tax withheld and TT populates it on Schedule CR for an IL tax credit.
I tried deleting the NE W-2 withholdings thinking that it would add that tax toward her IL liability since she will be getting refunded by NE similarly to the IA return. But I assume TT did what it did because she will get the NE state tax refund in 2024, of which it will be 2024 income that she will report for next year's IL state filing - is this correct?
One additional topic that I need some clarity on when going through the TT interview for figuring out the IL and non-IL portions of her AGI (although it seems that it doesn't change the result of her tax liability when I tweak the portions).
Column A in Schedule CR is pretty straightforward. Column B for the non-IL portion is a little unclear.
- Her W-2s show the same income reported to both NE and IA. She is a non-resident and I count this as non-IL income because the payer is from NE (i.e. Nebraska sourced income).
- She also has an NEC from a payer in IA (no tax withholdings). Again she is a non-resident performing her service in IA but her residency/business is based in IL being a full-time student in IA. I assume this business income is treated as business income for the IL Portion because of the reciprocal agreement - is this correct?
Anyway, that's what I have concluded, and hope it all makes sense.
