....I had income from my self-employed business in Jan and Feb (only) in Illinois and the family moved to Florida in June. Florida does not have State income tax. So do we file our regular Federal return + apartial return for Illinois for my business + file her income in Illinois for only the dates that we lived in Illinois and then pay no income tax for the rest of the year in any State? And can we deduct any closing costs that we did not expense to the company in the move?
Yes, you will file your federal return as you usually do and a part-year IL state income tax return for all income from all sources (including the income from the FL company) up to the date that you moved to/changed residency to FL. (No FL state return because FL has no state income taxes on wage income.)
As for closing costs, if these related to your home, you will be not be able to deduct these closing costs on your return but instead will increase the basis in your property to include these costs.
You do not need to enter or report the sale of your primary residence if:
You can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. See Sale of Your Home for more information on the exclusion.
If you still need to enter your sale of your primary residence (which may require an upgrade in TurboTax), please follow these steps:
Say "yes" that you sold your main home and TurboTax will guide you on entering this information. You will need:
Just remember to check the box to have your home sale reported on your tax return but ONLY if you receive a 1099-S
Yes, you will file your federal return as you usually do and a part-year IL state income tax return for all income from all sources (including the income from the FL company) up to the date that you moved to/changed residency to FL. (No FL state return because FL has no state income taxes on wage income.)
As for closing costs, if these related to your home, you will be not be able to deduct these closing costs on your return but instead will increase the basis in your property to include these costs.
You do not need to enter or report the sale of your primary residence if:
You can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. See Sale of Your Home for more information on the exclusion.
If you still need to enter your sale of your primary residence (which may require an upgrade in TurboTax), please follow these steps:
Say "yes" that you sold your main home and TurboTax will guide you on entering this information. You will need:
Just remember to check the box to have your home sale reported on your tax return but ONLY if you receive a 1099-S
Thank you for the very informative and prompt answer! I had not thought about the capital gain on the home sale in Illinois. We actually sold it for less than we purchased it for, however it was not a short sale...we had equity in the home in other words, despite the sale price being so much less than our former purchase price...if that makes sense.