[Prat]

Hi, I have a confusion/query regarding my state tax return forms, I'm filing it for the first time.

I took the tax treaty benefit while filing my federal tax returns (I used glacier tax prep) and so my adjusted gross income is coming out to be zero and total income exempt by treaty is showing my total income. Is that correct? So in my state tax return form should I just put a zero as well for adjusted gross income?

Thanks!

[AtlantaTaxExpert]

MOST states do NOT honor tax treaty exemptions, so you need to re-do the state without the treaty exemption.

BTW, which state are we talking about?

[Prat]

Illinois.. I did the federal tax with exemption, but the information from federal returns goes in the state tax returns form IL-1040 as well, so what do I do? Amend my federal tax form ?

[Prat]

If Illinois state does honor the tax treaty, how do I go about the state tax return forms? Enter the same amounts as in the federal tax returns and it should be okay?

Thanks!

[AtlantaTaxExpert]

Illinois does NOT honor the tax treaty.

Enter the tax data a second time on the tax software and do NOT do the tax treaty exemption, then efile JUST the Illinois return.

[Prat]

All right thank you, your help is much appreciated!

Just one more thing, So my federal tax return form that I have already filed and mailed has different amounts due to the exemption and in the Illinois tax return form I'll be using different amounts i.e without the exemption. There won't be any issue due to different amounts in both the forms?

[AtlantaTaxExpert]

I doubt it. If they DO ask, just tell them you were an international student and you applied a treaty exemption on the federal return.