No, you do not have to pay double. You may need to use your pay stubs to enter the appropriate state wages for each state for the residency period, in the W2 entry in the federal part of your return. This is the easiest way to accomplish the accurate part year state returns. This will eliminate the need for a "credit for taxes paid to another state", which should not apply in your situation.
- In the Federal interview search for W2 > Jump to W2
- Scroll to the State Wages and enter the correct state wages earned for both Indiana & Illinois
- DO NOT change the state withholding as it appears on the W2. Enter the state withholding for each state exactly as it appears on the W2.
