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New Member
posted Jun 6, 2019 3:56:05 AM

Won $50,000 from Indiana lottery in 2016; live in IL. Can I take a credit on my IL state return for "taxes paid to another state"? Do I need to file with IN also?

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1 Best answer
New Member
Jun 6, 2019 3:56:07 AM

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.

2 Replies
New Member
Jun 6, 2019 3:56:07 AM

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.

New Member
Jan 24, 2020 5:00:10 PM

In Illinois, you CANNOT take a credit for taxes paid to another state on gambling winnings.