W2 two different states

[inder89]

Usually do my taxes straight forward but this time I have run into an issue that requires some clarification and would appreciate anyone's assistance on the matter.
I am physician and moved to from TN to IL around near years eve of 2023. I stopped working at my previous job the day before I moved. I didnt start working in IL at my new position until mid Jan.

It was agreed that my previous employer would continue to monitor all the collections that would come through based on services rendered in 2023 (insurance companies some times take 2-3 months to re-imburse). So I received a lump sump of this in 3/2024 as was agreed upon.

Now filing for taxes, I used both W2s. When it was calculating my IL income tax, it had included the W2 that I received from my previous employer in TN when it was calculating total state taxable income. (no work/services done in 2024). So naturally with this, I end up owing money to the state. Is this expected or do I have to file differently? Thanks!

[DianeW777 · Accepted solution]

It is expected.  Any earnings received while you are a resident of Illinois (IL) would be included in the tax return for the residency period. A general rule that there is a credit for taxes paid to another state on the same income.  However, in your situation Tennessee (TN) does not have income tax and therefore you have no credit because you are not paying taxes twice.

• IL Filing Requirements