Saturday, June 19, 2010

Tax preparation, summer internshp. Should I fill non-resident in both states?

I%26#039;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%26#039;s 540-NR? The problem with this one is that Illinois wants to overcharge me and extra $300 for the days I%26#039;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%26amp;R TaxCut take care of it, but of course I hate to part with $30, which it charges for state tax filing! I%26#039;ll be ok with filling the required forms myself if I just knew which strategy to choose.



Tax preparation, summer internshp. Should I fill non-resident in both states?

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%26#039;ll be happy you did.

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