Illinois Properly Computed Foreign Tax Credit, Tribunal Rules

The Illinois Department of Revenue was right to deny a resident’s claim for a nearly $44,000 tax refund because certain deductions must be allocated entirely to out-of-state income, the state tax tribunal ruled.

Jeremy Dubow argued the state’s decision not to let him apportion alimony and health savings account deductions among the states where he earned income for tax years 2019-2021 left him worse off than a nonresident in the same position.

But the state’s tax code didn’t allow those deductions to be apportioned, Judge Brian F. Barov wrote for the Illinois Independent Tax Tribunal in an opinion posted Tuesday. ...