Illinois Part Year Resident and Unemployment

[RitaB]

Client moved here from Illinois and 75% of her 17,000+ in unemployment was received while she lived in IL.  Would I subtract 75% of 10,200, or the entire 10,200?  I'm searching, but I gotta tell you, I couldn't find my @$$ with a flashlight and both hands today.  

[Lion EA]

I think IL unemployment benefits are IL-sourced income and reported on the IL return, but you may want to look deeper than just a Q&A.

https://www2.illinois.gov/rev/questionsandanswers/Pages/101.aspx

[RitaB]

13 minutes ago, Lion EA said:

I think IL unemployment benefits are IL-sourced income and reported on the IL return, but you may want to look deeper than just a Q&A.

https://www2.illinois.gov/rev/questionsandanswers/Pages/101.aspx

Ok, yes, I have seen that, my flashlight battery is not completely gone, but all bets are off for 2020 and the BS legislation that somehow passed.  According to Donna's Taxslayer Link :  "3/23/21 - If you have not filed – You may file your Illinois return once you have filed your federal return. Taxpayers will not be required to add back any of the nontaxed unemployment benefits in computing their Illinois base income." 

 

[Lion EA]

Yes. And, the Q&A states that UC that's "included in your federal AGI..." I was responding to your question about 75% IL residency. It's IL residency OR from IL Dept. of Employment Security.

[RitaB]

I don't know if PACUN and ILLMAS are handy.  Could they be busy?  I'm not picking up what you're putting down, and I'm about over these part year resident tax returns.  

I'm just asking do I use 75% of 10,200 since I'm using 75% of unemployment benefits on the IL return?  What if 25% of unemployment is on another state (it is, we just happen to tax interest and dividends in TN).  Wouldn't I save 25% of the 10,200 for the other state?

 

[Abby Normal]

If you're using 75% in the Illinois column of form NR for the unemployment income, I think it makes sense to use 75% of the subtraction as well, but I only do 1 IL return a year.

I wish all the states would get together and have conformity for part year returns. I've seen people get really screwed moving between states.

[Lion EA]

IL will tax the full amount, because it's issued by IL. However, they go along with the federal exclusion of $10,200, taxing only what appears on the federal return. The unemployment benefits continue to be IL-sourced income if they are from the IL Dept. of Employment Security or if they qualified for benefits due to employment in IL.

Only if TN also taxed unemployment would you need to be concerned with which state was the resident state for how long. No 75% of anything unemployment related. IL doesn't care where you live re IL unemployment benefits; it's all IL-sourced income.

[Lion EA]

CT does that too. If a taxpayer is on CT unemployment when they move, they have to continue filing a CT return while they're on CT unemployment. It's CT-sourced income.

[RitaB]

2 hours ago, Lion EA said:

Yes. And, the Q&A states that UC that's "included in your federal AGI..." I was responding to your question about 75% IL residency. It's IL residency OR from IL Dept. of Employment Security.

I didn't ask about putting 75% of the income on the IL return.  I was just wrong about that one.  Thank you, I understand what you meant now.   

This woman is milking the unemployment benefits and we are wide open here.  If she wanted to work she'd be working.  This is too stupid to be real.  Best of all, I'll get to do this again next year.  

[Lion EA]

Charge her a bundle for the IL return each year!

[Lion EA]

I met a woman at a Mensa meeting who was on full disability for a mental disease. She was very clear about never going back to work, because then she wouldn't get free health/dental/vision, free daycare, and maybe even free public transportation and a few other goodies that made me tune her out.

[Possi]

Many, many more where she came from. But, that's another topic... 

[RitaB]

7 minutes ago, Lion EA said:

I met a woman at a Mensa meeting who was on full disability for a mental disease. She was very clear about never going back to work, because then she wouldn't get free health/dental/vision, free daycare, and maybe even free public transportation and a few other goodies that made me tune her out.

This type person offends me to no end.  We have made it easier not to work than to work for years, but now we're full blown, "Hold my beer..." 

And if Jesus was in my lobby healing people, ISTG some of my clients would say, "Don't touch me, I'm on disability."