I live in Michigan and have a first year rental in Illinois. Is this considered income in Illinois for my Illinois state return?

[AmyC]

Yes it is IL income and MI income. You should prepare the nonresident state first. Then prepare your resident state with a credit for income double taxed. You get credit for the lower state tax on the lowest taxable amount.

• Each state calculates taxable income differently. 
• Each state has its own tax rate/ system.
• You get the lowest of both categories as a tax credit

IL instructions page 3 say that you should file an IL return if you have taxable income as a nonresident.