I am a resident of IL who travels frequently to IN as part of my consulting job. I pay IN income tax on the part of income made in Indiana (as a non-resident in IN) and pay IL state tax on the entire income (as resident in IL). I am basically getting taxed twice on the same income: first by the non-resident state (IN) and second by resident state (IL).
Turbo Tax doesn't allow me to file state taxes online and the error message I'm getting is "Return cannot be e-filed when the sum of IL wages plus out of state wages on all W-2s does not equal total wages reported on IL schedule CR." I followed this option last year and IL rejected my refund request on the amount that was already taxed by IN. Has anyone run into this? What are my options?
you have to file 2 state returns. one is as an Indiana non-resident - this state return must be completed first in TT. Then you finish IL resident return where the CR form should compute the credit for the double-taxed income. when you e-file IL - TT should send an electronic copy of In along with the IL return and if you e-file In a copy of that return goes there. before filing make sure that for the CR form all your wages are in Column A and only In wages are in Column B. in addition there may be certain amounts for other lines that may have to be pro-rated.
note that we can not see your w-2 or tax return. ,
see these instructions for the Cr form to determine what items may be affected
you have to file 2 state returns. one is as an Indiana non-resident - this state return must be completed first in TT. Then you finish IL resident return where the CR form should compute the credit for the double-taxed income. when you e-file IL - TT should send an electronic copy of In along with the IL return and if you e-file In a copy of that return goes there. before filing make sure that for the CR form all your wages are in Column A and only In wages are in Column B. in addition there may be certain amounts for other lines that may have to be pro-rated.
note that we can not see your w-2 or tax return. ,
see these instructions for the Cr form to determine what items may be affected