If your military Active or Reserves, this error may be bypassed by making sure you select a Sate of residence in in your personal info section and NOT foreign or overseas. If you are a Civilian (DoD/Dept. State) living overseas this may not change the fact that you cannot e-file the return. For some it keeps cycling back to ...we found some information that is incorrect.... and taking you back to ask you to change to a non-resident filing status.
You will have to file as a resident of Indiana even though you are living overseas.
If you are a U. S. citizen working for the US Government, including the Foreign Service, and you are stationed abroad, your income tax filing requirements are generally the same as those for citizens and residents living in the United States. You are taxed on your worldwide income, even though you live and work abroad. However, you may receive certain allowances and have certain expenses that you generally do not have while living in the United States.
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