Moved/Worked in both states

Forum|Forum|2 years ago
January 29, 2024
1 reply
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At the beginning of 2023, I moved from Illinois to Missouri. I worked in both states during 2023. When filing state taxes, it asks if income was already taxed in another state. I filed my IL state tax return first, then Missouri. On my MO tax return, I filed an "out of state tax credit" for the income that was taxed in Illinois. Is this the correct thing to do? Most of my income was from Illinois so it was a large part of my income reported. It states that I will need to enclose a copy of my income tax return for each state? Any help is appreciated 🙂

Not A Product Question

KrisD15

No,

If you worked and lived in both states in 2023, you would file as Part-Year resident for each state and only allocate the income earned in that state to that state return.

If you earn income in two states but are a full-year resident of only one state, (if you lived in Missouri and worked in Illinois) THEN you would report the income earned in Illinois on a non-resident Illinois return, and pay that tax, THEN report ALL your income on the resident Missouri return and take a credit for the tax paid to Illinois.

The idea is that you don't pay tax twice on the same income.

These are two very different situations. If you are properly allocating the income (splitting up) to each state, then neither state would give a credit for the tax paid to another state.

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