On page 8 of the IT-40PNR Instructions, it states: "A part-year resident owes tax on taxable income received from all sources while being a resident of Indiana. A part- or full-year nonresident also owes tax on income from Indiana sources as listed below while a legal resident of another state."
To be clear, your state income is not prorated by the amount of time you were in Indiana, it is based on what items are taxable in Indiana.
The instructions for Schedule A (the Schedule to determine Indiana income for the IT-40PNR) state:
• Enter in Column A your income and adjustments as they appear on your federal return, Form 1040/1040-SR; and
• Enter in Column B the portion of your income and adjustments that is subject to Indiana income tax.
Note that the first item is from your federal return, and the second item might be the same as your federal return, depending on your sources of income.
"Turbo tax does have me using the IT-40PNR." What form is TurboTax creating?
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