Moved from Illinois to Indiana mid year but continued to work in Illinois

You will prepare a part-year resident return for each state. Prepare the IL return first, claiming all of your income earned up until you moved and then only your wages from then thru 12/31/2019.

Next prepare the part-year IN return claiming all of your income earned after moving there, including the IL wages, through 12/31.

 

To help prevent double taxation on the IL wages earned after moving to IN which both states are taxing, you may claim the other state tax credit on the IN return for the portion of IL's tax attributable to the wages earned after moving to IN. You will have to tell the TT Indiana program how much those wages were and the portion of IL tax attributable to that amount since TT cannot figure that out itself. TT Indiana will then compute that credit for you.

Here are some items to verify on your input in the program to assist you as well.

 

You will make your entries in the "My Info" section of TurboTax. 

Confirm that you have entered the correct state information: 

1. Click "Edit" to the right of your name 
2. Confirm your input under #2 "Tell us the state(s) you lived in" 
3. Confirm the rest of the state-specific questions here as well including the "previous state of residence" and "date you became a resident" of the state on December 31, 2019. 
4. Do the same for your spouse if you are married filing jointly. 
5. Go back to the personal information section, and verify the mailing address and "Other state income" section. 

Then go back into the state returns starting with the Illinois return first.  Proceed through the questions. 

 

Then go into the Indiana resident state interview section and verify the questions are answered there as well. 

 

You will be able to claim a credit for the taxes paid in the other state by reporting the information in the credit section of your input.  You should see Taxes Paid to Another State under the Credit for Taxes paid.   You can edit your information here if needed but the taxes paid to the other states should be listed in this section.

 

I filled using turbo tax but the fee was deducted from my refund. Before it was deposited to my bank. Does irs has my bank info.? I heared they will do direct deposit for the stimulus check. Or it will go to turbo tax bank?  If so. Will turbo tax deposit it to our bank right away?

Currently, there is no information on how the stimulus checks will be distributed. 

 

Please click here to visit the Turbo Tax page dedicated to the Corona Virus. We will provide updates there as they come in. 

I’m a little confused.  How do I claim income earned twice on my IL return? (amount from Jan – May, then the remaining Jun – Dec).

Since you continued to work in Illinois, you would claim all the income in Illinois and file as a part-year resident. You will be taxed as a part-year resident and then when you file your Indiana part-year resident return, you will be given credit for the tax that you paid in Illinois. Be sure you prepare your Illinois return BEFORE Indiana so that you will receive the proper tax credit in Indiana for the income earned in Illinois. also make sure the resident dates are correct for each state.