Indiana and Michigan have a reciprocal agreement. You only pay tax to the state in which you live. In your case, you pay Michigan Tax.
If your employer withheld Indiana tax, you will need to file an Indiana return to get that money back. Also, give the employer a WH-47 so that they withhold the proper tax. In your case, you need to pay Michigan Tax on your Indiana income.
If you work in a city that taxes, you DO need to pay the city or county tax.
If you do need to file for a refund: 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: <a rel="nofollow" target="_blank" href="http://www.in.gov/dor/4733.htm">http://www.in.gov/dor/4733.htm</a>
The original answer by TurboTaxKrisD is somewhat helpful as it explains the overall context of the situation for the taxpayer. However, it doesn't address lollyk1954's actual question of why TTax Indiana software says gross income and deductions should be blank when completing the specific form IT-40RNR for a reciprocal state refund. I also encountered this error in the review. The instructions for Indiana form IT-40RNR available on Indiana's website say:
"Was your principal place of employment on Jan. 1, 2017, located in an Indiana county? If yes, go on to the next question. If no, skip lines 1 through 8 and enter all Indiana state and county withholding amounts on lines 9 and/or 10."
So it appears that TTax is correct in leaving lines 1-8 blank on the form under the circumstances described by lollyk1954.
Still have questions?Make a post