AnnetteB
Intuit Alumni

State tax filing

Yes, you will need to file returns for both states.

Because you sold property in Indiana, you are considered to have income from Indiana and therefore must file a non-resident return. 

Complete the non-resident return first because then it will be easier to work on the Other State Tax Credit on your resident return to reduce the impact of  having the income from the sale of the home taxed by both states.