State tax filing

Ok, thank you for the information you supplied.

IN is denying any State income taxes withheld on the return filed.

This credit is generally from the W-2, in box 17.  Also make sure box 15 and 16 are correct also. 

Look at your W-2 and make sure that you have taxes withheld and that they are for IN and not another State.

This is why they denied the $2,212.  If you W-2 looks good, and it have IN taxes of $2,212, contact your employer and get a letter from them that this is correct and send your W-2 to IN with the correspondence you recived from them with the letter from your employer.

It appears you did your return correct in TurboTax (if that W-2 is correct).  

Your employer may not have submitted the information correctly to IN, 

IN may have input something a digit off, 

There are a number of reasons this may have had happened.

Good news is that if the W-2 is correct, you will be getting your money, it will just be a few weeks after you send in the information.