I am retired. No longer a resident of IN. Receive deferred comp from a former IN employer. Believe my Lake Co, IN tax liability is -0-. Turbotax computes it. Yes? No?

[Cindy0H · Accepted solution]

Yes, TurboTax can do that for you. It looks like you need to file in Indiana.

Go ahead and complete the Indiana return as a nonresident.

This is what Indiana says about nonresidents:

• If you were a full-year nonresident of Indiana, but received any income from Indiana sources, you must file your Indiana income taxes.
• Generally, if you were a resident of another state (or country) at any time during the year and had income from Indiana (except certain interest, dividends or pension income), you must file a tax return with Indiana.
  

The instruction book (page 😎 in the link has information on what is considered income for a nonresident:

https://www.in.gov/dor/4732.htm

[guy-ausmus]

Didn’t answer the question.  Tax liable at the state level, of course. County level, don’t believe so. I answer “00” (out of state) to both the residency & the employment questions. Think county liabilities 0. TurboTax won’t allow that possibility

[Cindy0H]

I think I misunderstood. What exactly would you like to know?

[guy-ausmus]

I believe my situation is pretty unique. I am retired. I receive deferred Comp from a job I had in Lake County, IN. Remittances generate a W2 from my former employer. Live in Idaho presently. I carefully read what the Indiana DOR says about residency and employment in IN. I am not employed in IN , nor am I a resident. This, I answer non-resident to both questions. And am not liable at the county level for income tax. Nonetheless, TurboTax enters Lake County (county code 45), and computes and additional $1100 IN income tax liability (Lake Co.) levies a 1.5% income tax)

This rolls thru my ID return & my Federal return. I had to rework all of these by hand. Question: how to override the automatic Lake County, IN designation?

[Cindy0H]

Let me work on that.

[Cindy0H]

Is the W2 generating the Lake County?

[Cindy0H]

I was able to eliminate the County taxes. When Turbo Tax asks where I worked in Indiana, I went to bottom that said "Out of State...other states". Try that. I haven't tried Idaho yet.

[guy-ausmus]

Physical W2?  No.  TT doesn’t give me an option.  It defaults to “00” for the residency question (which is true) and “45” (Lake County) for the Where did you work question.

[Cindy0H]

Can you change that?