WI Resident - Illinois Unemployment Compensation

[IFoxHoleI]

Context: I am a Wisconsin (WI) resident who worked in Illinois (IL) from the start of 2024 through the end of August. From September through the end of the year, I received unemployment benefits from IL. I had IL withhold taxes from my unemployment benefits and am filing an IL state return. However, I'm also noticing that the IL unemployment benefits amount is included as part of my total taxable income on my WI return and is not being subtracted on the WI Schedule SB, line 3 (Unemployment compensation).

Question 1: Is this accurate? I know it is part of my gross federal income, but shouldn't it be subtracted from my taxable income for WI since I already paid IL state tax?

Question 2: If the IL unemployment compensation is supposed to be subtracted from my WI taxable income, why is TurboTax not currently doing so, and how can I resolve this issue? 

Thank you in advance for your time and attention to these questions.

[MaryK4 · Accepted solution]

Yes, you are required to pay Illinois income tax on unemployment that you receive as a nonresident.  You also must report it on your resident Wisconsin return, but you can claim the credit for taxes paid to another state on the Wisconsin return.  

[IFoxHoleI]

@MaryK4- Thank you for answering my first question! 

How and where can I claim this credit on my Wisconsin state return using TurboTax? Currently, the Illinois unemployment compensation amount is not being credited. As a result, I owe more to Wisconsin than I should, because this amount is still considered taxable income.

[IFoxHoleI]

Never mind...I found what I'm looking for. Please disregard my previous post.