State tax withheld is reported in box 13 of the K-1 (partnership) with Code W, or box 12 of the K-1 (S-Corp) with Code S. If you enter in on the K-1 in the 1040, it will flow to the Tax Payments Worksheet and then to the IN return.
If, however, you have local taxes withheld, they have to be entered manually in the IN return.
If you are using the CD/Download version of TurboTax, you can go into Forms Mode and enter the amount of county taxes withheld on line 13 of the Indiana Tax Payments Worksheet.
@EKS2
