When filing your taxes using TurboTax and you are required to fill out Schedule CR for Illinois, it is essential to understand what the Schedule CR and the corresponding sections mean, especially in the context of having income from multiple states.

Schedule CR Overview: Schedule CR is a form used by Illinois residents to claim a credit for taxes paid to other states on income earned outside of Illinois. This is particularly relevant for individuals like yourself, who reside in Illinois but earn a significant portion of their income in Colorado.

NSE Wks and Non-IL SE Income Explained: In the context of TurboTax, "NSE wks" refers to "Nonresident State Earned Income." This implies that you need to report your income earned from sources outside of Illinois, specifically from your work in Colorado. When TurboTax prompts you for this information, it's asking you to calculate how much of your total income was earned in Colorado, as this will affect the credit you can claim on your Illinois taxes.

Steps to Follow:

1. Complete Your Colorado Tax Return: Before filling out Illinois Schedule CR, you should complete your tax returns for Colorado, as it will provide the necessary information regarding taxes paid to Colorado.

2. Report Your Non-Illinois Income: On Schedule CR, you will need to document your total income earned in Colorado and the taxes paid there.

3. Credit Calculation: After noting the income from Colorado, calculate the equivalent credit for taxes paid, as this will reduce your Illinois tax obligation. This credit is aimed at preventing double taxation on income that was taxed in both states.

For additional guidance, you might want to review the Illinois Department of Revenue Schedule CR Instructions. This document provides clear instructions on how to fill out the form, what information is needed in each section, and how to calculate your credit based on earnings and taxes paid in Colorado.

If you're still running into difficulties or if the information provided by TurboTax isn't clear, consider looking at the community discussions on TurboTax's official site for specific scenarios and solutions other users have shared, such as the importance of accurately reporting your NSE income and how to ensure you're applying for the correct credits.

In summary, accurately inputting your Non-IL SE income is critical to ensure that you receive the appropriate tax credit on your Illinois return for taxes paid to Colorado. Always verify that you have completed and gathered all necessary information from your state tax filings before proceeding.

Sources

[PDF] 2024 Schedule CR Instructions - Illinois Department of RevenueFor Illinois, why does Turbotax fill out Schedule CR? Instructions ...Illinois tax return Schedule CR does not appear to be correct.2024 IL-1040 Schedule CR InstructionsHow do I resolve "Return cannot be e-filed when the sum of Illinois ...I moved to IL from NYC. I'm encountering errors filling out Schedule ...Return cannot be e filed when the sum of Illinois wages plus out of ...

Related Questions

What is the schedule CR for Illinois taxes?

How do I report non statutory stock options on my tax return?

Who must file an Illinois nonresident tax return?

What is Illinois' earned income tax credit?