State tax filing

Based on what you are sharing, you are considered a part-year nonresident of Indiana.  You will only be taxed on the wages earned in Indiana.  However, your military retirement is taxed by your state of residence when you receive them, which would be Texas if there was a state income tax.

The Indiana Department of Revenue website states, "if you were a legal resident of another state and had income from Indiana (except certain interest, dividends, or pension income), you must file Form IT-40PNR."

For your federal tax return, your residence is where you earn your income.  This is called your tax home.  Generally, you will not be able to deduct the cost of travel between Texas and Indiana; nor can you deduct your living expenses while working in Indiana.

View solution in original post