topic When filing my Illinois State return, Turbo Tax is not recognizing the tax credit for my personal residency? in State tax filing

When filing my Illinois State return, Turbo Tax is not recognizing the tax credit for my personal residency?

mrc1223 — Mon, 23 Feb 2026 13:19:17 GMT

Filing simple return, property tax credit should be .05%, this is the first year that Turbo Tax is not recognizing

Re: When filing my Illinois State return, Turbo Tax is not recognizing the tax credit for my pers...

JamesG1 — Tue, 07 Feb 2023 16:28:26 GMT

I am able to report the Illinois Property tax credit on Illinois Schedule ICR line 5. The credit is also reported on Illinois form IL-1040 line 16.

Illinois Property tax credit can be located under Credits and taxes under the Illinois state tax return. You must pass through several screens to qualify for the credit.

@mrc1223

Re: When filing my Illinois State return, Turbo Tax is not recognizing the tax credit for my pers...

bensiegel1 — Wed, 15 Mar 2023 01:35:19 GMT

I have the same issue. TurboTax shows line #16 as blank. When e-Filing direct through the state of IL there is a value there that decreases my overall taxes due. I assume the state site is correct and turbotax is in error. Is that the community's understanding as well?

Re: When filing my Illinois State return, Turbo Tax is not recognizing the tax credit for my pers...

JamesG1 — Wed, 15 Mar 2023 22:47:20 GMT

I am able to report the Illinois Property tax credit on Illinois Schedule ICR line 5. The credit is also reported on Illinois form IL-1040 line 16.

Illinois Property tax credit can be located under Credits and taxes under the Illinois state tax return. You must pass through several screens to qualify for the credit.

@bensiegel1

Re: When filing my Illinois State return, Turbo Tax is not recognizing the tax credit for my pers...

zrtqw59 — Sat, 31 Jan 2026 21:08:33 GMT

I am having the same problem. It appears to be a logic error in schedule ICR , Step 2, Section A , line 5, when comparing lines 3 and 4g. Line 3 is current IL tax due. Line 4g is IL Property tax credit which is 5% of IL property tax paid to an IL county. I have met all the requirements to qualify for the credit on line 4g in Section A.

In my case line 3 is almost 6 times greater than the computed tax credit on line 4g. Both non-zero integers. Line 5 compares lines 3 & 4g and the lesser number is to be reported on line 5. Yet the comparison result is zero and not the lesser number on line 4g.

I checked last year's return which has the same comparison logic and the lessor number is correctly calculated and entered as a property tax credit.

This is clearly a logic error.

Re: When filing my Illinois State return, Turbo Tax is not recognizing the tax credit for my pers...

RogerD1 — Mon, 02 Feb 2026 23:10:36 GMT

I did some entries for an IL return and found it to come out correct. Let's go back and look at some entries:

In Interview mode (or step-by-step), click on State Taxes, then click Edit for the Illinois return
When you get to the Screen "Take a look at Illinois credits and taxes", click Edit by Property tax credit
On the screen "Credit for property taxes", are all of the questions there answered Yes? Any No answers will disallow the credit.
On the next screen, you enter the Property Information including the County and Property Index Number (found on your property tax bill)
The next screen asks for portions of the taxes that were not on the residence or if they were deductible as business expense. If neither of these apply, both boxes should have a zero. Click Continue.
The next screen will say "Your property tax credit is $xxxx.xx" which should be 5% of your total property tax - as long as your tax liability exceeds that.

IL Schedule ICR in my test, showed a tax liability on line 3 over 3x the property tax credit amount. Line 4g and 5 were identical and equal to the property tax credit determined on step 6 above. This figure also carried over to Form IL-1040, line 16.

If these steps don't work, you may want to consider deleting your IL return and starting over. You can do that by clicking on File in the black banner near the upper left, then click Remove State Return. Once you click on the Illinois return under Return Description, click Remove. Then you can go back in the State Taxes tab and start over on the Illinois return.

Re: When filing my Illinois State return, Turbo Tax is not recognizing the tax credit for my pers...

user17721440689 — Thu, 26 Feb 2026 22:16:53 GMT

I have deleted my IL return and re-entered information and it still is not calculating Property Tax Credit correctly. It appears it is referencing line E3 rather than line 3 when comparing line 3 and line 4g to come up with the answer on line 5.

Not sure how to proceed.

Re: When filing my Illinois State return, Turbo Tax is not recognizing the tax credit for my pers...

RogerD1 — Thu, 26 Feb 2026 23:46:33 GMT

To claim the credit, your adjusted gross income must be $500,000 or less if married filing jointly, or $250,000 or less for all other filing statues. If you AGI is over these limits, this could be why the property tax credit is not populating.

If your income is in range to claim the credit, be sure that you entered your property tax payments in the Deductions & Credits section of the Federal return.

Next check your entries in TurboTax for IL. A screen for IL credits and taxes as the title will have under Personal home and family credits the property tax credit - click Revisit.

On the Credit for property taxes screen, all 4 questions on that page need to be answered yes in order to qualify.

You'll enter your Property information on the next screen.

Any amount of taxes not on the residence or taxes that were deductible elsewhere are entered on the next page.

This should allow the credit to calculate.