Legally and technically yes, you do. Unfortunately, Indiana is one of
those states that requires all nonresidents with "Indiana-source" income
(this includes gambling winnings) to file state tax returns. Some
states are more lenient on this point, and have certain dollar income
limit thresholds, below which nonresidents don't need to file; while
other states like Indiana have no such income-amount exemptions available
for nonresidents.
You can quickly read the Indiana filing requirements for yourself by reviewing the following Ohio Department of Taxation webpage:
http://www.in.gov/dor/4731.htm
That being said, even though this means you have to file an Indiana
state tax return, it doesn't necessarily mean that you'll pay much in
taxes there. In fact, if you had Indiana state taxes withheld from your
casino winnings (see your W-2G), then it's certainly possible that you could see some of
that money returned to you by way of an Indiana state income tax refund.
And the only way to request such a refund is to submit an Indiana tax
return.
At the very least, filing an Indiana
state tax return is a legal requirement if you have a W-2G from winnings at an Indiana casino.
One
final tip here. In TurboTax, when completing multi-state tax returns, there
is a specific ordering sequence involved. It is important to follow
this process, so that the software will calculate correctly; it goes
like this. Complete your federal tax return first, your nonresident
state return second (Indiana), and complete your resident state return last
(Illinois).
Thank you for asking this question, and we wish you good luck with your future gambling activities.
