Capital Gains

[Dfir]

I live in Illinois and sold a vacation property in Wisconsin.  Our income level is such that I wont1 pay capital gains on the federal return.  The program is prompting me to file state a return in Wisconsin as well as Illinois.  After I have attempted to enter limited information for Wisconsin, it tells me I have to wait.  Are there changes coming?  Also, what information do I really need to enter on the Wisconsin return so that I’m sure that any other income is NOT included?

[DianeW777]

Yes, changes are coming.  As the states become ready to receive returns by finalizing their systems TurboTax will be updated accordingly. Keep checking back in your return.

State Returns -  Prepare the nonresident state first.

1. Report the sale in the state where the property resides.
2. Report it on your resident state and receive credit for taxes paid to another state.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state.  Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state