Question

Texas Income showing up in Illinois numbers in Turbo Tax

Forum|Forum|4 years ago
February 27, 2022
1 reply
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My son worked in Illinois, and goes to school in Texas and worked there, so has 2 W-2s.

I selected Yes he had income from multiple states, but because Texas has no state tax, Turbo Tax just has me select "No Entry".

Fed taxes work fine, but when I do Illinois Taxes, the Money made in Texas is being taxed by Illinois. Is this correct?

SteamTrain

Employee

IF you, as parents, are IL residents, he is under age 24, and thus is still your dependent, then he is an IL resident also.

As such, IL taxes his income from everywhere, even the TX job.....so yes, he may owe IL taxes for that income.

IF he worked in, say Colorado, IL would still assess a tax on that CO income, but then IL would allow him to take a credit for the taxes he had to pay to CO. But since TX didn't assess any income tax, IL will tax it all.

It would be the same for you if you went down and worked in TX for (say) a summer temp job, before returning home to IL...TX didn't tax it, and since you are an IL resident, IL taxes it all.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*