Solved

I operate a farm in Illinois but moved to Iowa in late 2016. How do I enter 2017 farm income for Illinois and then Iowa? Do I pay Illinois income tax for the farm income?

Forum|Forum|7 years ago
June 4, 2019
1 reply
0 views

To be clear I live and am employed by a company in Iowa but still operate my farm in Illinois as secondary income.

TurboTax Free Edition Online

Best answer by IsabellaG

You will have to report your Illinois farm income in both Illinois and Iowa.

There is a reciprocal agreement between those two states, but it only applies to wages, so your farm income will be taxable in Illinois (because you earned it there) and to Iowa (because you live there).

After you prepare your federal return, prepare your Illinois Nonresident return. Follow the screens carefully to show which income belongs to Illinois.

Next, prepare your Resident Iowa return. Iowa will give you a credit for income taxes paid to another state.

IsabellaGAnswer

Employee

You will have to report your Illinois farm income in both Illinois and Iowa.

There is a reciprocal agreement between those two states, but it only applies to wages, so your farm income will be taxable in Illinois (because you earned it there) and to Iowa (because you live there).

After you prepare your federal return, prepare your Illinois Nonresident return. Follow the screens carefully to show which income belongs to Illinois.

Next, prepare your Resident Iowa return. Iowa will give you a credit for income taxes paid to another state.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"