Yes it is IL income and MI income. You should prepare the nonresident state first. Then prepare your resident state with a credit for income double taxed. You get credit for the lower state tax on the lowest taxable amount. Each state calculates taxable income differently. Each state has its own tax rate/ system. You get the lowest of both categories as a tax creditIL instructions page 3 say that you should file an IL return if you have taxable income as a nonresident.

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kenvasil

Question

I live in Michigan and have a first year rental in Illinois. Is this considered income in Illinois for my Illinois state return?

Forum|Forum|11 months ago
April 14, 2025
1 reply
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AmyC

Employee

Yes it is IL income and MI income. You should prepare the nonresident state first. Then prepare your resident state with a credit for income double taxed. You get credit for the lower state tax on the lowest taxable amount.