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Illinois State Tax - Credit for taxes paid to another state

In the last year, I worked in Indiana but lived in Illinois. As such, my employer took out state income tax for Indiana. Within TurboTax, it notes that I am liable for the full non-resident income tax amount for Indiana, which makes sense.

 

When filing my resident income tax amount for Illinois, it notes that I am liable for income tax on my full income to be paid to Illinois. This also makes sense. However, in the field for "Personal, home, and family credits," there is a choice to add "Credit for taxes paid to another state." Within it, I put the Other State Tax Paid To (IN) and the checkbox for locality taxes. The total income taxed by Indiana and tax paid to Indiana (State + Local) were added. 

 

This resulted in the credit being zero, which it, to my knowledge, should not be. To my knowledge, it should be the total amount of tax I paid to Indiana. Why is this tax credit not applying? 

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2 Replies

Illinois State Tax - Credit for taxes paid to another state

the credit is computed on Illinois form CR so you need to review that to see what happened 

line 1 column b should be your Indiana wages

 

 

at one time, not sure that's the case now, the IN return had to be done before IL for the correct credit to be computed.

 

Illinois State Tax - Credit for taxes paid to another state

This is my first time filing in multiple states. I completed both returns, where Indiana is listed above Illinois. The credit has not been applied automatically. Illinois Form Schedule CR has 1A as zero and 1B as my total Indiana wages. 

 

Would I need to first file the IN return? Not sure how that would affect things. Both my IL and IN returns have been noted to be completed without error, but the taxes due have not changed. 

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