Illinois DOR Issues General Information Letter on Credit for Taxes Paid to Other States

The Illinois Department of Revenue (DOR) issued a general information letter stating that compensation paid in Illinois does not qualify for credit for taxes paid to other states. The letter clarified that a resident is entitled to a credit for any taxes paid to other states on income taxed by Illinois, but the total credit cannot exceed a limit. The limit equals the amount of Illinois income tax attributable to the income that is sourced outside Illinois using Illinois’ allocation and apportionment provisions. Ill. Dep’t of Revenue, Gen. Info. Letter IT-19-0018-GIL, 10/25/24]

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