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Hoosier2014
New Member

Moved From IN to IL. How to properly file state taxes.

I was a student in Indiana prior to moving to Illinois and starting a job midway through the year. I did not work while in Indiana, however, I did receive a signing bonus and first week of pay prior to becoming an Illinois resident. As a result, my W2 has Illinois taxing me on 100% of my income and Indiana taxing me on 20% of my income.

 

I'm filing part-year resident returns for both states, however, I'm not sure how to properly enter the information so that I'm not double-taxed on 20% of my income. Hoping someone can advise on how I need to handle this situation. Thanks in advance!

3 Replies
DaveF1006
Expert Alumni

Moved From IN to IL. How to properly file state taxes.

When you prepare your state returns, prepare your Indiana PY return first and then your Illinois return. When you prepare your Indiana return, pay particular attention to how to allocate/separate your Indiana income so you will be taxed only on your Indiana income.  if you do this, then Illinois return should be correct based off of the information you place in your Indiana return.

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Hoosier2014
New Member

Moved From IN to IL. How to properly file state taxes.

Hello, I completed the Indiana PY first, however, the IL wages are flowing from my W2 and aren't being reduced by the wages from Indiana.

DaveF1006
Expert Alumni

Moved From IN to IL. How to properly file state taxes.

To a naked eye, it appears that all your income is being taxed in Illinois.  That is not the case however. if you look at your Illinois IL-1040, it starts out with the Federal taxable income and continues with this same total to line 9. Then it gives you an exemption amount in line 10. Line 11 should accurately reflect what portion of your Illinois income minus the personal exemption amount for the year.

 

if you viewed this in the Illinois tax Summary in your Turbo Tax online return, then you would actually need to view your Illinois IL-1040 return to see how the taxable amount was determined. Of course, you won't be able to see this unless you pay for your Turbo Tax product first.  One of the drawbacks for using Turbo Tax Online but otherwise, it is a great product.

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