IL - One spouse full year resident, one spouse part year resident

Forum|Forum|1 year ago
February 26, 2025
2 replies
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How do you get the software to work? It only asks for one set of dates/states, populates both spouses with that information and you can't override. Solution?

TurboTax Home & Biz Windows

ANNEMARIEPAuthor

Upon further review, I think the wording of the IL state residency question isn't fully accurate. It should ask if you or your spouse is a full time resident of IL. If yes, I believe you don't file the NR forms.

From the instructions:

Note: If you check the “Yes” box on Line 1, you cannot use Schedule NR. If you file your Illinois return indicating your filing status as “married filing jointly” and one spouse is a full-year resident of Illinois, both spouses must use full-year residency status. However, if you are filing a joint federal return and one spouse is an Illinois resident while the other is a full-year nonresident, you may choose to file with Illinois as “married filing separately.” In this case, do not recompute any items on your federal return. Instead, you must divide each item of income and deduction shown on your joint federal return between your separate Illinois returns following the Allocation Worksheet in the Form IL-1040 Instructions. The spouse filing as a nonresident must attach a completed Schedule NR.

DianeW777

Yes, that is correct based on the instructions. File as married filing jointly and if there is any income taxed by another state, then you should receive a credit for taxes paid to another state on your Illinois (IL) tax return. The credit will be for your spouse's income that is also taxed in another state.

State Returns - Assumes both states require income tax returns to be filed: Prepare the other part year resident state

Report the income earned while a part year resident.
Report it on your resident state of IL and receive credit for taxes paid to another state.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state. Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

the tax liability actually charged by the nonresident state, OR
the tax liability that would have been charged by your resident state

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TomD8

Employee

You should enter each spouse's residency information separately in the Personal Information of TT.

For the part-year resident spouse, their State of Residence is their state of residence as of December 31st of the tax year. Then indicate that they also lived in the other state, and enter the date they began living in the current state.

If the part-year resident spouse had no income other from outside one of their resident states, then answer NO to having had "other state income."

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