What if the state I live in is different state than the state where I work?

ToyotaDriver
ToyotaDriver Member, Star Posts: 20
edited August 2023 in State Filing

I live in one state and work in another state. How do I report the credit for taxes paid to another state?

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Best Answer

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 587
    edited August 2023 Answer ✓

    Hey ToyotaDriver,

    Follow these steps:

    1.) On the Nonresident State Income screen, allocate all of the income you earned while working in that state to the state income column. Click Save and Continue.

    2.) Continue through the nonresident state until you get to the State Tax Summary screen, and write down the Nonresident State Adjusted Gross Income, the State Taxable Income, and the State Total Tax.

    3.) Complete the resident state return

    4.) When you reach the screen labeled Your Taxes Paid to Another State, click the yes option.

    5.) Enter all of the requested information, and click Save and Continue.

    After finishing the taxes paid to another state section, your resident income tax refund should go up significantly or your resident state tax due should decrease.

Answers

  • EddieA
    EddieA Member Posts: 3 Newcomer
    edited March 30

    Is there a bug in the current version of the software for state payments and refundable credits?

    I've done this and no matter what number I put into the "Enter the amount of tax withheld for Missouri" (I live in Illinois but work in Missouri) my Illinois tax amount remains unchanged. In the Summary for Illinois (my resident state) it says $0 no matter what numbers I enter.

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 587

    Hi,

    What you are describing is normal. Only information entered on the Illinois pages will impact Illinois. Information for Missouri will not change the Illinois return. However if you claim the credit for taxes paid to Missouri on your Illinois return that will change things.

    I recommend you contact Customer Support so they can view your return.

    https://community.freetaxusa.com/discussion/comment/5090#Comment_5090
  • EddieA
    EddieA Member Posts: 3 Newcomer

    Hi Matthew,

    That is the issue I am having
    "if you claim the credit for taxes paid to Missouri on your Illinois return that will change things."

    It is not changing anything. No matter what number I put in the box the IL amount is unaffected even after the summary. The software does not deduct the Missouri amount from the IL amount. That seems like a bug

    https://community.freetaxusa.com/discussion/comment/5102#Comment_5102
  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 587
    https://community.freetaxusa.com/discussion/comment/5121#Comment_5121

    Hi Eddie,

    Are you claim a credit for taxes paid to MO on your IL return? Make sure the credit is claimed on your resident return for the nonresident state taxes.

    We need to look at your account. Will you contact Customer Support while signed into your account.

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