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Level 1
posted Apr 8, 2020 2:56:17 PM

Illinois Schedule NR (Non-Resident)

We relocated from IL to NV during 2019. Based on the date of our relocation, TurboTax entered only a portion of my W-2 wages in Column B (Illinois Portion) of my Nonresident and Part-Year Resident Computation of Illinois Tax (Schedule NR). I received a Return Correction Notice from the State saying that "Wages earned in Illinois are taxed by Illinois regardless of your residency when you earned these wages." Did TurboTax make a mistake here, or did I do something incorrectly.

0 2 1858
2 Replies
Expert Alumni
Apr 8, 2020 3:16:14 PM

The program pulls over the full amount and asks you to enter the correct amounts. 

Level 1
Apr 15, 2020 2:01:21 PM

Thank you for the reply, but the program could use some improvement here. The question asked is: "How much of the $xx,xxx did you earn while living or working in Illinois?" "Living or working" is a link which in turn requires choosing between two other links and then looking at Example 2. I would argue that the initial screen should at least include the simple text that my Return Correction Notice included: "Wages earned in Illinois are taxed by Illinois regardless of your residency when you earned these wages."  I don't remember distinctly, but I doubt I even followed those links because when I saw "living or working in Illinois," my answer was that only the wages earned before my relocation date should be entered. The argument made in the instructions is that I was working in Illinois without living there and must be taxed on the full amount, but I thought of it as I was working in Nevada for an Illinois employer, i.e. I was not working in Illinois.