Article: 50394
The IL Schedule NR screen determines whether your Indiana return should be prepared as a part-year or nonresident return.
Note: Green highlighted fields are override fields and should only be used if the system did not correctly allocate the income automatically.
- Nonresident of Illinois: Check this box if you did not live in Illinois at any time during the year.
- Part-Year Resident: If you lived in Illinois for part of the year, leave the box unchecked and enter your dates of residency.
- You can also enter dates and select the state for any Other State Lived In entries for both taxpayer and spouse.
- If you or your spouse were a resident of Iowa, Kentucky, Michigan, or Wisconsin, or were in Illinois only to accompany a military spouse, check the applicable box to apply any reciprocal agreement rules.
How to Add These Screens
- Click on the State Taxes section on the left-hand side of the screen.
- Click the link I’d like to see the forms I’ve filled out or search for a form.
- Use the drop list to select Indiana.
- Under the General tab, select and complete and each applicable screen:
- IN – General Information
- IN – IT-40PNR: Schedule A – Income or Loss and Proration
- IN – IT-40PNRA: Apportioned Income for Nonresidents
- Click Save.
Other States You Earned Income/File Returns In
Use this section to report any income earned in other states.
- Select the states where you worked or filed tax returns.
- This section is also used to trigger reciprocal agreements, which prevent double taxation between Illinois and select neighboring states.
- Be sure to enter Total Sales Inside Illinois for proper allocation of income.
IL Schedule M – Other Additions (Nonresidents Only)
This screen allows nonresidents to report certain types of Illinois-source income or adjustments.
- Business Expense Recapture: If you’re a nonresident, you may need to enter this amount if applicable.
- The remaining fields on this screen are used less frequently and pertain to specific college savings or ABLE account scenarios. Skip them unless directed otherwise.
IL Schedule CR – Tax Paid to Other States Credit
This screen helps you calculate a credit for taxes paid to other states on income also taxed by Illinois.
- Check Nonresident of Illinois if you didn’t live in IL.
– Part-year residents should check Generate the IL-CR (Part-Year Residents Only). - Select any applicable states (Iowa, Kentucky, Michigan, Wisconsin) where you paid tax.
- Enter your Total Illinois Sales and confirm the amount of income tax paid to other states on Illinois base income, if needed. This value usually flows automatically and should only be overridden with care.
Further Information
For full guidance on part-year or nonresident filing requirements in Indiana, visit the Indiana Department of Revenue – Individuals: https://www.in.gov/dor/individual-income-taxes/