Jump to content
ATX Community

IL tax pros - credits for taxes paid to other states


LouD

Recommended Posts

any IL tax experts out there - existing client moved to IL in 2016 so first year preparing the resident return.  Every year, client's W2 has 15 states where he worked with the wages broken out between the states so now I'm trying to figure out how to claim the credits for the taxes paid to those other states.  Looking at IL 1040CR instructions, it states that I shouldn't include wages paid to other states if they are also shows as IL wages - and that's the case with this client but if I don't include the wages, then he won't get credit for the taxes paid to the other states?

Am I missing something of where to enter things?  the only way ATX calculates the credit is if there are wages in Column B for the other states which populates the decimal ratio and the related tax credit - I would hate to think client isn't entitled to the tax credits for other state payments?

Thanks for any help and guidance!

Link to comment
Share on other sites

Illinois will give you a credit for taxes paid to another state of either the amount paid to the other state or the amount of tax Illinois would have charged on that income, whichever is less.  Prepare a return for each state in which income is earned, but be aware that if the income is below the filing threshhold in any state and the state charges no tax, IL will not credit any amount and will tax that income at IL rates if the person is an IL resident or part year resident.  If the wages all show on the W-2 as IL wages, then no other state return needs to be filed for those wages as they are all considered to have been earned in Illinois.

 

Hope this helps.  It is not exactly fair, but it is what it is.

 

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...