Yes, complete the Indiana return first, then the Illinois return where you will receive credit for taxes paid to other states.
You will identify which state
is the source of your income as you go through the process.
You need to complete your
federal return first, so that all information for you state filing is
available. Next, you need to complete your non-resident state taxes. After both
federal and your non-resident state forms have been completed, you can finalize
your resident state forms.
If you're like most taxpayers, you'll
only need to file one state return, usually in your resident state. You might
not even have to file a state return at all if you live and work in a state that doesn't collect income tax.
But if you have income from multiple
states, own out-of-state property or business interests that produce income, or
your employer withheld taxes for the wrong state, you'll probably need to file
a nonresident state return in addition to your resident state return. More info
And if you moved from one state to
another, you'll likely have to file part-year returns in multiples states for
that year. You might even have to file a third nonresident state return if you
started working in the other state before you moved or continued working in
your former state after the move. More info
TurboTax handles nonresident
and part-year returns and will determine which state return(s) you need to file
based on the information you provide in the Personal Info section.
