Moved twice - Do I need to file in Illinois?

[Jugu]

I moved twice in 2022, but only earned income from my job in one state - though I have interest income, capital gains, and dividend income. It seems like I may be able to avoid the hassle and recognize that income only in my final, resident state, since it's a relatively small amount. I'm struggling to understand the language in the Illinois rules, however - it says "As a Nonresident, you must file Form IL-1040 and Schedule NR if your Illinois base income from Schedule NR is greater than your Illinois exemption allowance on Schedule NR." The portion of the interest, dividend, and capital gains that I could attribute to the time I spent in Illinois is indeed less than the exemption allowance, $2,425, but I am unsure if I'm interpreting the rule right. Does anyone have tips for this scenario?

[LindaS5247]

You most likely should be filing a resident (where you live now) and a nonresident tax return (where you moved from).  You should enter your nonresident state tax return first.

It is recommended to prepare the nonresident state first because your resident state will provide you a credit for the tax you pay to the nonresident state.  By preparing the nonresident state first, TurboTax can transfer the credit information to your resident state to return.  

So this should be calculated for you.

If you moved to a state and had any income (including retirement income), you will need to prepare a state return for that state. If you did not have any income at all in that state that year, you would not be required to file a state tax return.

File a part-year return for the state where you earned your income. If you had income in the second state, file a part-year return there as well.

Click here for "How to file if I moved to a different state last year."

Click here for instructions on how to file your nonresident return.

Click here for information regarding filing multiple states returns.

[Jugu]

Thank you! Do you have any other tips for Interest income, Dividend income, and capital gains? Should I just multiply the interest and dividend income amounts by the portion of time I lived in each state, and then allocate capital gains to the state I was living in when I incurred them? 

[SharonD007]

You would allocate the unearned income that you received in the state you were a resident of when you received it.

Please review the TurboTax Help article How do I allocate (split) income for a part-year state return?