I entered the correct amount on line 1A and $0 on line 2A, but Turbo Tax did not calculate the difference correctly on line 3A. It said it fixed error when I logged back and revisited the return. However line 3A did not change. It is not clear if Turbo Tax needs new update or how do I fix this. I should not have to file by mail now.
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In this public forum we do not have access to your return or account, but I may be able to assist you as I am quite familiar with the form you are trying to get TurboTax to file. That form is Indiana's Nonresident Reciprocal Return. If you live in any state other than Indiana, that has a reciprocal agreement with Indiana (Wisconsin, Michigan, Ohio, Kentucky, and Pennsylvania), and you earn only wages (reported on Form W2), Indiana requires you to file the form to reconcile your county/local taxes, which are not a part of the reciprocal agreement. It also may be used to claim a refund of any state taxes mistakenly withheld and remitted to Indiana.
If you need this form, you shouldn't need to make any manual inputs. Double-check your entries on your W2 forms to make sure that all of your entries in Box 16 (State Income), Box 17 (State Withholdings), Box 18, (Local Income) and Box 19 (Local Withholdings) are all correct. If these have been entered correctly, when you get to the reciprocal return screens, no entry adjustments should be needed, because all of the information should flow to the return. If you are making manual entries on the state screens, chances are that it's interfering with the remaining information. You can use the Tools link (if TurboTax Online) to review the information that is flowing to the return. If you are using Desktop software, Forms mode will give you the best way to view it. Also make sure that in your Personal Information screen that you have not selected that you work in Indiana. Because of the reciprocal agreement, you are considered to not work there.
Related to this, but a separate issue: If you were not working in Indiana on January 1, 2021, then you do not pay Indiana County/Local Tax. Make sure you enter the correct code (95 for KY, 96 for MI, 97 for OH, 98 for PA for 99 for WI) to state that at the beginning of 2021, you were physically working somewhere other than Indiana.
Please note: If you had unemployment income paid by Indiana, and you are a resident of a reciprocal state, you may not use Form IT40-RNR. Instead, you must use Indiana's Part-Year Nonresident Return (IT40-PNR). You select this form at the beginning of the Indiana State interview instead of the reciprocal return option. By making proper entries for your resident state, wages and self-employment received from Indiana will be excluded.
In addition, any other form of income you earned in Indiana other than wages or unemployment is taxable to Indiana state and local, and would therefore also require IT40-PNR.
If you check all of this, are certain you have entered everything correctly and you still get the error, please respond back to me @DanielV01 so that we can take other steps.
Thank you for your reply and the information. Unfortunately I am unable to review or make any changes on my IT40-PNR in the TurboTax tool on my pc (download version) until the amendment is available on Feb 24. I can view the filed (rejected) pdf I saved. I did see another error on the form I saw on the pdf. the year 2020 shows in the deceased year for my daughter and also one in the spouse field. The day and month field are still blank. I know I did not enter deceased on any Federal form or state form. I am hoping the amendment is a bug fixed form. I believe the errors on not my entries. Thanks Brent
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