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alexryndak
Returning Member

Allocate all or a portion of the income reported on your federal return to Illinois based on the length of your residency or the source of the income.

I lived in illinois until august 2020 and moved to washington. I no longer work from illinois.

 

I got a question that asked me how much income I made while living in illinois, which was automatically put in from my W-2.

When I clicked next, it asked me this:

"Allocate all or a portion of the income reported on your federal return to Illinois based on the length of your residency or the source of the income. Enter the amount that applies to the time you were an Illinois resident or to your activities in Illinois. If none, enter zero."

 

Do I just enter the same income from the previous question? I'm very confused about this.

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7 Replies
DavidD66
Employee Tax Expert

Allocate all or a portion of the income reported on your federal return to Illinois based on the length of your residency or the source of the income.

You should enter the amount of income you earned while living in, or working in Illinois.  If that happens to be 100% of your income, include it all.  

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alexryndak
Returning Member

Allocate all or a portion of the income reported on your federal return to Illinois based on the length of your residency or the source of the income.

I noticed when I do that, my state tax return jumps from $70 to $1800 and it makes me feel like I'm doing something wrong. I've never gotten more than a couple hundred dollars for state tax return.

ThomasM125
Employee Tax Expert

Allocate all or a portion of the income reported on your federal return to Illinois based on the length of your residency or the source of the income.

The second question says to allocate a portion of the income reported on your federal return to Illinois based on the source of the income. So, to that question you need to enter just the income earned in Illinois, since the federal return will also include income earned in the other state.

 

You can view your state tax summary to make sure the income reported to Illinois is correct, but using these menu tabs while working in the Illinois return:

  1. Tools
  2. Tax Tools (left side of the menu bar)
  3. View Tax Summary
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computergrover
Returning Member

Allocate all or a portion of the income reported on your federal return to Illinois based on the length of your residency or the source of the income.

If you enter the amount on the previous screen of Federal Earned Income, it will double the amount you state you report as state income, and cause you to owe money.

DMarkM1
Employee Tax Expert

Allocate all or a portion of the income reported on your federal return to Illinois based on the length of your residency or the source of the income.

You will not enter the IL income twice.  On page that asks about How much of your total "WAGES" were earned in IL? That should pre-populate with the amount from box 16 on your W2 corresponding to IL.  The next page lists other categories of income that you have that may need to be divided based on your IL residency time; not wages.  They were taken care of previously with your W2 entries.

 

@alexryndak  @computergrover

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computergrover
Returning Member

Allocate all or a portion of the income reported on your federal return to Illinois based on the length of your residency or the source of the income.

This is not the case. I worked in IL 100% 2021, live in IN 100% 2021. If I enter the amount of box 16 of my W2, the final page shows my IL Resident Income as 2 x Box16. If I enter 0 in that field, it reports correctly. 

@DMarkM1 

computergrover
Returning Member

Allocate all or a portion of the income reported on your federal return to Illinois based on the length of your residency or the source of the income.

I think I understand what you are stating. The first screen does ask "how much" you earned in IL (wages), the second screen is for Rent, Royalties, and K-1 income. That field I am populating as 0 and it looks correct and does not double the income. However, the "allocate your federal income" note is not helpful. That should have been placed on the previous screen, but instead makes the user think they need to fill in the field a second time. Pour choice of wording. 

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