Solved: Due to military spouse relief act we should not be paying Illinois state taxes and receive a full refund from state, but filing online defaults a small refund
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Due to military spouse relief act we should not be paying Illinois state taxes and receive a full refund from state, but filing online defaults a small refund

What do I select to make the online read correct. I know we should be recieving a full state refund from our non-SLR.
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Employee Tax Expert

Due to military spouse relief act we should not be paying Illinois state taxes and receive a full refund from state, but filing online defaults a small refund

You are correct.  It sounds like Illinois is not your SLR.  You will need to file an Illinois nonresident return, but in the area that talks about allocation (or the portion of your income that is from Illinois), you will put in a zero.  Here is an FAQ about allocation:  https://ttlc.intuit.com/replies/4777389

You will also want your wife to speak to her employer about her Military Spouse situation, so they can report tax to the correct state (if your SLR taxes her income).  They should assist by helping provide any paperwork she needs to file with them and/or the state of Illinois for this.

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Employee Tax Expert

Due to military spouse relief act we should not be paying Illinois state taxes and receive a full refund from state, but filing online defaults a small refund

You are correct.  It sounds like Illinois is not your SLR.  You will need to file an Illinois nonresident return, but in the area that talks about allocation (or the portion of your income that is from Illinois), you will put in a zero.  Here is an FAQ about allocation:  https://ttlc.intuit.com/replies/4777389

You will also want your wife to speak to her employer about her Military Spouse situation, so they can report tax to the correct state (if your SLR taxes her income).  They should assist by helping provide any paperwork she needs to file with them and/or the state of Illinois for this.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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New Member

Due to military spouse relief act we should not be paying Illinois state taxes and receive a full refund from state, but filing online defaults a small refund

It's still only showing a partial refund. Not the entire full refund.
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Employee Tax Expert

Due to military spouse relief act we should not be paying Illinois state taxes and receive a full refund from state, but filing online defaults a small refund

Here is the instruction manual for the Illinois Tax Return:  <a rel="nofollow" target="_blank" href="http://www.revenue.state.il.us/TaxForms/IncmCurrentYear/Individual/IL-1040-Instr.pdf">http://www.rev... page 2, under the bullet "a nonresident", it directs that you will need to file the nonresident return for a return of withholdings held in error, which is the case here.  The instructions require you to receive an explanation from the employer.  If this is the case, file your other returns, but hold off Illinois as a paper return.  Try overriding the W-2 by putting in a zero for her Illinois income.  (Also be sure that your W-2 is marked as Active Duty.  It could be Illinois is factoring that in when they should not).  Obtain the letter from her employer, and attach the letter and the W-2 to the nonresident return and mail it in.  I'm sorry it's a bit more complicated, but that sounds like the best way to go in your case.
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