Multiple State taxe Returns OH and IL

[anikdharia]

Hello, my daughter is 22 and is a full time student in OH.  Her full time residence is in IL.  She worked in OH in 2025 and made $20K.  Currently when filing federal she will receive $900. When filing both OH and IL returns the software states she owes $1K in IL and refund of $440 from OH.  She has no other income, no income interest, no stock sells and no property- very standard and basic.  Why does show owe so much in IL when she did not work in IL? and what am i missing? Thank you.

[xmasbaby0]

Did you claim your daughter as a dependent?   Living away at school is considered to be a "temporary absence" from home, so you can say that she lived at home with you in IL, even if she attended school in OH.   Since she worked and earned income in OH, she should have prepared a NON-resident OH tax return and then after that, a resident IL return.   Is that how you/she did things?

[SharonD007]

Review your daughter's personal answers on the Personal Info section which is needed to help ensure that you create the correct state tax returns. Also, delete the state returns and start over.  You shouldn't ‌be paying taxes on the same income in both Ohio and IL. 

To delete your OH and IL tax returns, follow the steps below:

1. Launch TurboTax and select State from the menu and Continue
2. On Status of your state returns screen select delete next to OH and IL and confirm.

Refer to the TurboTax article How do I delete my state return in TurboTax Online?

To review your answers in the Personal Info section:

1. Select your name under My Info
2. Select Continue 
3. Select the down arrow under Other state Income and select Revisit
4. Select Yes, I made money in states other than IL
5. Select that you made money in OH.

After you complete your federal tax return and you move to the State Taxes sections, both your non-resident Ohio and resident state returns will be listed.  Prepare your non-resident  tax return first. Your daughter should y get a credit on her IL tax return for the taxes on the OH return.

For additional information, refer to the TurboTax Help articles Do I have to file tax returns in more than one state?,  Why would I have to file a nonresident state return? and How do I file a nonresident state return?

[anikdharia]

Yes, that is how it is being done.  I just realized though the OH employer did not deduct state taxes - this box is left blank but they did deduct local taxes.  Is this why she has to pay on the IL return?  

[SharonD007]

Yes, even though your daughter worked in OH, she has to pay IL state income taxes on the income that she made in OH.  The good news is that she is getting a refund for the taxes that were withheld in OH.

Refer to the TurboTax Blog Illinois State Income Tax in 2025: A Guide for additional information.