Credit for taxes paid to another state

[FredcpaAZ]

Have a client that is part year AZ, part year IL, but his job for IL is located In St louis MO. Am I correct that IL should be giving credit for the taxes paid in IL, He has zero taxes paid (withheld) to Il MO income is 73K
The part year AZ is good and done, its just the credit bewtween the states that I am unsure of
thanks for you help

[FEDUKE404]

Part-year and non-resident returns needed

Your question is a bit confusing.

From your statement, it would appear the client would need to file a part-year resident return for both IL and AZ. The allowable personal exemptions/standard deductions/ whatever would likely have to be adjusted along the lines of the income from each state versus the federal income.

If the client worked in MO while living in IL, then IL would have a (primary) bite of that apple. The MO tax return would likely be of the non-resident nature. Any tax liability for MO could be used to offset the IL taxes on the same income.

I can't help you on this one --- "Am I correct that IL should be giving credit for the taxes paid in IL"

Other issues that may come into play could involve any reciprocal tax agreements between the adjacent states (IL/MO). Someone more familiar with the tax returns of those two states could comment further.

FE

[taxmom34]

I am a bit confused as well. I am assuming client is a resident of AZ. his employer is in IL but he does not work there, he works for the company in MO. is my assumption correct? if so you need to establish where he is a resident of. I don't think there is a need to file IL based on OP remarks.