Tax preparation, summer internshp. Should I fill non-resident in both states?
I'm a resident of the state of Illinois, and I had a summer internship (summer 2007) in California. How should I fill the state taxes? Does any of the following options sound reasonable? 1. Fill Illinois state tax as resident (IL-1040, or their free webfile), and fill California's 540-NR? The problem with this one is that Illinois wants to overcharge me and extra $300 for the days I've been in California. 2. Fill IL-1040 and IL-1040-CR and CA-540-NR to get a credit for the California tax in my Illinois forms/ 3. For both states, fill as non resident or partial resident. (IL-1040-NR, CA-540-NR). The only problem here is that is that in IL-1040-NR there is no way to mention an exit date AND and a re-entrance date. 4. There is a final option of letting a software such as H&R TaxCut take care of it, but of course I hate to part with $30, which it charges for state tax filing! I'll be ok with filling the required forms myself if I just knew which strategy to choose. Here is the answer from the Illinois Department of Revenue, which I put here for future reference: You are considered an IL. resident and report all income to this state. You file first with CA (non resident), then file the IL-1040 and Schedule CR. You will need to attach a copy of the CA return when submitting the IL-1040. If you need help filling out the CR, go to our web site (under Publications) and click on the PUB 111 (comparison formula for 2007 returns), find the CA return you filled out and then follow the instructions and you will then know what amounts to enter on Col. B and C.
Public Comments
- Your obvious answer is to go to a tax professional. I live in No. IL. You need to file a Ca. return depending on how much they withheld. Then you will file to IL and claim the credit paid to CA. Help yourself out and go to a professional and get it done correctly. You'll be happy you did.
