How to adjust business income when living in two different states during tax year?

ryjope — Mon, 09 Mar 2026 04:46:44 GMT

Hello, I lived in two different states while running my business in 2021 - Illinois and Indiana. Using the tax software I designated myself as a Part-Year resident for both states. In my state tax return for Illinois I was able to designate how much of my Federal Total income was earned while living in Illinois. However, when I try to file my Indiana tax return the amount entered into the Indiana box for Business Income or (Loss) is the same as my Federal total and the box is grayed out and I'm not able to change it. So the tax software is calculating that I owe Indiana taxes as if I had earned all of my income in Indiana in 2021, but it was actually less than 50%.

Please does anyone have any solution or ideas on how I am able to change the amount of business income I earned specifically while living in Indiana? Thank you for any help/

Re: How to adjust business income when living in two different states during tax year?

AliciaP1 — Tue, 01 Mar 2022 22:04:55 GMT

This is a known issue, but there is a workaround so you do not have to delay filing your return.

If you change your self-employed business address on the federal input to the other state, in your case IL, the IN return allows entry into the apportionment box and it also still allows changes on the IL return.

@ryjope

topic How to adjust business income when living in two different states during tax year? in Get your taxes done using TurboTax

How to adjust business income when living in two different states during tax year?

Re: How to adjust business income when living in two different states during tax year?