Can this computation be correct for Illinois state taxes? Completed my retired parents tax return who are Illinois residents. They have never had to pay state tax.

Forum|Forum|7 years ago
June 1, 2019
1 reply
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Used standard deduction, itemized in previous years. Did not include details such as property taxes, medical expenses on the Federal Return. Did cash in Federal savings bond during 2018.

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Yes, it is possible for them to owe however, you need to enter the real estate taxes they paid in 2018 so they could get the credit calculated on IL 2018 Schedule ICR IL Credits. Generally, this zero's out a balance due or reduces the amount owed.

Your parent's federal Adjusted Gross Income (AGI) gets carried over to the IL return. Retirement income is not taxed so it is deducted from their AGI.
Their IL exemption amount for a Married Filing Jointly couple si $4,450 and if both are over 65, they get to deduct another $2,000 for a total of $6,450.
They can also apply the credit for real estate taxes paid on IL Schedule ICR.

Anonymous

Answer

Your parent's federal Adjusted Gross Income (AGI) gets carried over to the IL return. Retirement income is not taxed so it is deducted from their AGI.
Their IL exemption amount for a Married Filing Jointly couple si $4,450 and if both are over 65, they get to deduct another $2,000 for a total of $6,450.
They can also apply the credit for real estate taxes paid on IL Schedule ICR.