Solved: Re: The state tax credit did not show up correctly in Turbotax

Jeff178 · Feb 16, 2025 11:57:56 PM

<P>I lived in IL from Jan to April 2024 and then moved to NY. During that time I was in IL, I worked remotely for a NY employer and paid NY state tax for that part of my income. When I filled this part in the "tax paid to another state" at the tax credit part in my IL state report in Turbotax, it did not correctly show this part of the credit. What shall I do to correct this? Or did I do something wrong? Thanks!</P>

The state tax credit did not show up correctly in Turbotax

Apologies for the confusion.

Illinois and Wisconsin have tax reciprocity, which means the income you earned from working in Wisconsin is only taxable to Illinois. Because of this, your resident state (Illinois) does not grant a credit for taxes paid to your nonresident state (Wisconsin). Since you had tax withheld for WI, you will need to file a return to get that money back. You'll need to allocate $0 of income to WI so you can get a full refund. Then file your IL return as if all of your income was earned within IL.

You'll get all of your tax back from WI and no credit on your IL return.

@MrJames25