Unfortunately yes. If you earned wages in IL but are a resident of IN, your income will be considered IL-source income and you would need to report this income on an IL nonresident state income tax return. You will want to contact your IL employer regarding your state withholdings. (IN and IL do not have a wage reciprocal agreement.)
You will also need to
file a IN resident state tax return (for all income from all sources including
IL income). You will get a state income tax credit in IN for any IL state
income taxes that you paid on your nonresident IL state income tax return.
You
will want to work on your nonresident IL state income tax return first. You
will then take a tax credit from your nonresident IL state income taxes on your
resident IN state income tax return. (Please note that you will only get a tax
credit for your IL state income taxes up to the amount of IN state income taxes
that would have been paid if the income was earned in IN). The credit for
taxes paid to another state section will be at the end of your residence
state's interview process.
Just
follow the TurboTax guide when working on your states (remembering to do your nonresident state return first) and
TurboTax will do all the calculations and credits to your resident states
return
Here
is additional information about filing in multiple states (select "see
more answer" to view the entire attachment)
https://ttlc.intuit.com/replies/3300797
