Solved

The state tax credit did not show up correctly in Turbotax

Forum|Forum|1 year ago
February 17, 2025
4 replies
0 views

I lived in IL from Jan to April 2024 and then moved to NY. During that time I was in IL, I worked remotely for a NY employer and paid NY state tax for that part of my income. When I filled this part in the "tax paid to another state" at the tax credit part in my IL state report in Turbotax, it did not correctly show this part of the credit. What shall I do to correct this? Or did I do something wrong? Thanks!

Best answer by KeshaH

Sorry, that was a typo and should have been the amount you earned in New York while an Illinois resident.

So if you worked in Illinois for the first four months and made $1,000 but that $1,000 is all considered New York source income, you'd put $1,000 in that column.

You don't need to delete anything on the other state credit form, it will all be used to calculate your credit.

K

KeshaH

When you say that the credit didn't calculate correctly, are you saying that the credit didn't calculate at all or that the credit is different than what you expected it to be?

There are two limitations when it comes to the credit for taxes paid to other states. The credit is usually the lower of:

1. The tax paid in the nonresident state

2. The tax you would have paid in the resident state

What that means is:

1. If NY tax on that income is lower than the tax you owe in IL, then you would still owe IL the difference.

2. If the tax you would owe in IL is lower than the tax you paid in NY, your credit would be limited.

Basically, IL is not going to give you a full refund of the tax you paid NY if IL's tax is lower than NY's tax.

If you still believe your credit is calculating incorrectly, we can take a look at your return so we can see exactly what you see and help come to a resolution. The return will be scrubbed and will not include any of your personal details.

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

Reply to this message with your token and we'll take a look to see what we can find. Let us know what other states, if any, are included in your return.

J

Jeff178Author

Hi Kasha,

The credit didn't calculate at all. So I believe there is a bug somewhere in the software or maybe I entered it incorrectly but that is the only place I can find to fill in the tax credit.

When I try to share files with agent, I cannot find this button. On the left hand panel, I can only see two tabs "Tax Home" and "Documents" on the top, and "referral rewards", "Intuit Account", and “sign out" at the bottom, neither one of them has "tax tools" if I click it. I even tried to ask the AI in the app but the AI did not know it either. Can you help me with where I can find the "share my file with agent" button? I am using the "Intuit Turbotax Premium". I tried both the iOS app and the browser version. But neither of them has this tool. Thanks!

K

KeshaH

The Tax Tools menu is only available when you're inside the return and able to input information. When you're logged in, on the Tax Home screen click on any of the tax return topics to open up the tax return. Then you'll see more options on the left hand panel, including Tax Tools.

Did you go through the screens for the credit? There may be additional information needing to be put into the program to calculate. I can verify once you send over the token.

T

TomD8

@Jeff178 --

Did you file a part-year resident return for both states? Did you complete your Illinois tax return first, before your New York state return? When doing part-year resident returns, it's important to follow these instructions:

How do I file a part-year state return?

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

J

Jeff178Author

Yeah, I tried it following the instructions in the link but it is still not working. Thanks for providing the link though!

K

KeshaHAnswer

Sorry, that was a typo and should have been the amount you earned in New York while an Illinois resident.

So if you worked in Illinois for the first four months and made $1,000 but that $1,000 is all considered New York source income, you'd put $1,000 in that column.

You don't need to delete anything on the other state credit form, it will all be used to calculate your credit.

J

Jeff178Author

Thank you! The tax credit showed up after I followed your instructions. I filed my report in the app. Thank you for your help!

M

MrJames25

I have a similar issue. Live in Illinois. Worked in Wisconsin for 3 months. The Wisconsin return, Line 50 Form 1NPR "Net income tax paid to another state" should have the amount that I paid in Illinois. However, it is blank, and therefore, calculating a massive tax due to Wisconsin.

K

KeshaH

The credit is calculated on the resident return in most cases, so you'd be getting a credit on your IL return. It doesn't impact the nonresident return. For the 1NPR, you will just need to allocate the three months worth of income to WI so that the tax that's calculated is based only on that income.

@MrJames25

M

MrJames25

My Illinois return does not show any credit for taxes paid in another state. I am getting double taxed. Both state returns are calculating taxes due on my full income.