@cbusa - you would have to file in both states
1) in Indiana as a non-resident listing only the Indiana sourced income
2) in Illinois as a resident, include the Indiana sourced income.
3) The Illinois tax return will create a credit for the tax paid to Illinois so that you are not paying state income tax on the same dollar in both states.
4) While Turbo Tax will handle this seamlessly, it's best to be sure your Indiana return is 'locked down' so you are confident the credit is appropriately transfered to the Illinois return.
