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When you are in My Info you are going to be asked what state you lived in and you will also be asked if you made money in any other state. You will indicate that you lived in IN, but that you made money in IL. You will need to file a non-resident state tax return for IL. Prepare your NON-resident state return first, and then prepare a state return for IN, the state that you live in.
https://ttlc.intuit.com/questions/2895920-why-would-i-have-to-file-a-nonresident-state-return
there is no reciprocity between Indiana and Illinois. It seems you're saying you lived and worked in Illinois for part of 2023 and then moved to Indiana but continued to work in Illinois. It will tax you on all income earned while you lived there and other income after you left that is sourced to Illinois (your wages as an example). For Indiana, any income earned while a resident even if it was from Illinois employment is taxed as well as any other income sourced to Indiana.
you would indicate in Turbotax IN resident on 12/31/2023 and then answer you were a part-year resident and enter the dates. you would also be asked about earning income in another state to which you would answer yes. ad then answer the related questions.
It may be that the free edition does not handle multistate situations.
you would probably be entitled to an Indiana tax credit for the taxes you pay tp Illinois for wages earned once you became an Indiana resident.
The general rule is: your report all your income on your home state return, even the income earned out of state. You file a non-resident state return for the state you worked in and pay tax to that state. Your home state will give you a credit, or partial credit, for what you paid the non-resident state. The general rule applies to IN-IL. You will have to file a non resident IL state return* and pay IL tax on the income earned there.. You will also file a IN full year resident return* and calculate tax on ALL your income. IN will give you a credit, or partial credit, for the tax you pay IL. So, there will be little or no double taxation, but you have the cost and hassle of filing two state returns. Do the nonresident state return first.
You may have heard of "reciprocal states". This does not apply to IN & IL, even though they are neighboring states.
* If 2023 was the year of your move, you will file part year resident returns for both states.
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