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WaterCane
New Member

I live in Illinois but worked part of the year in Louisiana. Why is TurboTax indicating Illinois taxable income as my full income instead of the IL state wages in Box 16?

I live in Illinois but worked part of the year in Louisiana-- received 2 separate W2's. Why is TurboTax indicating Illinois taxable income as my full income instead of the IL state wages in Box 16?

Thank you!

1 Best answer

Accepted Solutions
DanielV01
Expert Alumni

I live in Illinois but worked part of the year in Louisiana. Why is TurboTax indicating Illinois taxable income as my full income instead of the IL state wages in Box 16?

This is correct.  When you are a resident in any state, all of your income is taxable in that state regardless of where you earned it.  However, since, as an Illinois resident, you earned income in Louisiana (who also taxes you on the income you earn there), Illinois will give you a credit for the tax you must pay to Louisiana.  Because of this, you will want to prepare the Louisiana return first so that your credit is calculated correctly.  Here is an FAQ that will show you how to do this:  https://ttlc.intuit.com/replies/3302052

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1 Reply
DanielV01
Expert Alumni

I live in Illinois but worked part of the year in Louisiana. Why is TurboTax indicating Illinois taxable income as my full income instead of the IL state wages in Box 16?

This is correct.  When you are a resident in any state, all of your income is taxable in that state regardless of where you earned it.  However, since, as an Illinois resident, you earned income in Louisiana (who also taxes you on the income you earn there), Illinois will give you a credit for the tax you must pay to Louisiana.  Because of this, you will want to prepare the Louisiana return first so that your credit is calculated correctly.  Here is an FAQ that will show you how to do this:  https://ttlc.intuit.com/replies/3302052

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

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