I live in Ohio and my employer is based in Indiana, but the work I performed was primarily done in Ohio. Do I need to complete an Indiana tax return?

[DanielV01 · Accepted solution]

No, you will not, unless Indiana state tax was withheld from your paycheck.  Indiana and Ohio are reciprocal states, which means they have an agreement that you only pay tax to the state you live in:  Ohio.  If you did not have Indiana tax taken out, you will not file an Indiana return.  In TurboTax, you will answer no to the questions if you lived or worked in another state.  You are not considered to be working in Indiana because you are not taxed there (and the work you do in Ohio would not count anyways even though your company is located in Indiana).

If Indiana state tax was taken out, however, you would file a nonresident reciprocal return for Indiana (select "Change Residency" on the Indiana return, which allows you to select the reciprocal return).  Then, any Indiana state tax will be returned to you.

If Indiana local tax was charged, you would have to claim this as a credit on your Ohio local return if you are required to file a local return in Ohio.  Your Ohio locality may give you a credit for the taxes you pay to an Indiana locality.