In 2022, I got married and moved to Kentucky from Indiana. Sadly, I didn't inform my employer of the move and had Indiana taxes withheld for all of 2022. This didn't come to light until my husband and I filed our taxes in 2023 (April). So, it wasn't until April 2023 that my address was updated, and Kentucky taxes properly withheld. I filed a part-year tax return for both KY and IN in 2022 since I lived in both states. Now that it's 2023, how can I recoup the Indiana state taxes that were withheld from Jan-Apr? I lived in KY all 12 months in 2023, so have filed a KY full resident return and owe a full year of KY state tax. In TurboTax, how do I get the Indiana state tax paid back?
Kind thanks, Penny
If you continued to work in Indiana, after the move, you have a reciprocal state situation, for 2023.
IN has a specific form (IT-40RNR) for a reciprocal state refund. Rather than paying TurboTax for IN software, you should try filing that form by hand. It looks pretty simple. Get it here: http://www.in.gov/dor/4733.htm
In the personal info section, when it asks if you made money in another state, answer NO, per the reciprocal state instructions, on that page. This will prevent TurboTax from thinking you need to file a regular IN return.
Thank you for your response.
For 2023, I did mark in the PERSONAL section that all income was earned in KY and that I lived in KY for the full year. I have never worked in INDIANA, just lived there. I have always worked in KY, it's just the "living" part that is causing the issue and me not changing my address when I got married and moved to KY. TurboTax is not suggesting that I file an IN return, however, I would like to get these taxes back since I had to pay 12 months on KY taxes.
However, it appears that you are suggesting that I file a form IT-40RNR to get the IN taxes refunded. Correct?
Thanks again!
Q. However, it appears that you are suggesting that I file a form IT-40RNR to get the IN taxes refunded. Correct?
A. Not exactly. I know that 's the correct form when you work in IN, but live in KY. From the inductions at the Dept. of Revenue website, it appears that is still the best form. You may want to call them to verify.
File Form IT-40RNR if you (and your spouse, if married filing jointly) were full-year residents of Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, and the only income you received from Indiana was from wages, salaries, tips or other compensation. Note: If you have any other kind of Indiana-source income, you'll have to file Form IT-40PNR.
File IT-40PNR if you (and your spouse, if married filing jointly) were Indiana residents for less than a full-year or were not Indiana residents at all (or if you and your spouse are filing jointly and only one of you was a full-year Indiana resident) and do not qualify to file Form IT-40RNR.