Q. Based on this, it seems that my principal place of employment was Wisconsin, not an Indiana county, and therefore I can claim a refund of those Indiana local taxes. Am I interpreting this correctly?
A. No. You employer was correct to withhold county tax, for the time you worked in IN. You can not get county tax refunded, unless the wrong amount was withheld.
Your principal place of employment on Jan. 1, 2022, located in an Indiana county is where you work when you "traveled to Indiana to be on site physically". The intent of the wording is to allow employers to only have to withhold county tax for one county, when employees work in multiple counties.
Because of the reciprocal agreement, you are not required to file an IN return, unless your employer mistakenly withheld IN state income tax or the wrong amount of country income tax. In that case, IT-40RNR is the correct form.
