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Level 1
June 5, 2019
Question

Help with Reciprocal Nonresident Individual Income Tax Return?

  • June 5, 2019
  • 1 reply
  • 2 views
In 2018, I lived temporarily in Indiana (fewer than the 183 days to be considered a resident), but my permanent address is in Kentucky. I'm still in Indiana, in fact. I'm here for an internship and will be moving back to Kentucky soon. I'm trying to fill out the Reciprocal Nonresident tax return form, and it asked for my gross income from Indiana employment. I have a job here, so obviously I have income. But it's saying that on Form IT-40RNR, gross income from Indiana employment should be blank. What have I done wrong?

1 reply

DanielV01
Level 15
June 5, 2019

Double-check all of your entries.  In the Personal section of the program, you will state that you were a Kentucky resident (full-year), and that you did not live in any other state.  (For tax purposes, going to school is a temporary absence from your main home in KY).  You do say that you worked in another state (Indiana) because you need to file a nonresident reciprocal return if Indiana state taxes were withheld.  This would be in Box 17 of the Indiana W2 where box 15 says IN.  If Box 17 is blank or only shows KY, you do not need to file the nonresident reciprocal return.  There would be nothing to claim in this case.

If you still do need the Indiana nonresident reciprocal return, then, in the Indiana section of your return, you select that return (not the nonresident return).  Answer in which state you lived, and the county where you were working on January 1, 2018 (if you were not working in Indiana on January 1, you will also state that you were working out-of-state).  The entries from your W-2 and these entries should combine to correctly fill out your non-resident reciprocal return.

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