While living in Illinois, I worked in Indiana as a nonresident but turbotax says I owe both Illinois and Indiana. How do I avoid being taxed twice, if possible?

[akortze]

Indiana/nonresident return:
1. (Turbotax) - "How much of the $$$ did you earn while working in Indiana?"
2. I enter amount X.
3. I am taxed for that amount on the IN return.

Illinois/partial resident return (I moved to Texas later in 2016 after being an IL resident at the start of 2016):
1. (Turbotax) - "How much of the $$$ did you earn while living OR working in Illinois?"
2. I enter amount X, same as above, because I was a resident of Illinois while working in Indiana.
3. I am also taxed for that amount on the IL return, while not receiving credit for the Indiana taxes as expected.

[Critter · Accepted solution]

If you complete the non resident return first and then the resident state return then you would get a credit on the IL return for the taxes you paid in IN  however you may still owe both states.   Review both returns to see why you owe and make sure you got the credit.

[akortze]

Thanks for the very quick reply! So I did fill out the nonresident state (Indiana) first, but unfortunately am not seeing the Illinois credit when filling out the Illinois return. Do you know where in the turbotax software/process we should see this credit applied? Like you mentioned, it does appear I owe both states, but I'm not seeing the credit on the IL return.

[bcschultz23]

I am having the exact same issue with my taxes for 2018...did you ever resolve or has anyone else encountered the same thing? I suspect its an issue with entering partial-year resident for IL (I moved mid way through 2018 as well), as I didn't have the same issue on my 2017 taxes when I lived there all year.