Need help with two state return (MI & IL)

[dsheth82]

Hello everyone,

I have a client who was a resident of MI for half of the year, and moved to IL after 6/1/07 permanently. While doing state returns, do i need to show income earned while resident of MI on IL's return, and then take the credit for taxes paid to MI?

Or do i show income earned in IL on IL's return, and income earned in MI on MI's return?

Thanks,

[LindaB]

Or do i show income earned in IL on IL's return, and income earned in MI on MI's return?

This is correct, you do a part year return for each state, and only include on each the income earned in that state. You should not have any credits for taxes paid to another state.

[dsheth82]

This is correct, you do a part year return for each state, and only include on each the income earned in that state. You should not have any credits for taxes paid to another state.

Thank you.