Owing Indiana state taxes instead of getting a refund.

[benny740]

I have used Turbo Tax for years, and this is the 3rd time I have somehow made a mistake, which is very frustrating. 

I received a letter from the Indiana Dept of Revenue saying that they are wrong. Instead of getting back $117.00 I owe $2,283.55 because of schedule 5 which shows credits. I have no idea what this all means. Based on the info and attachment, can anyone tell me where I went wrong?

What I want to know is, where do I find schedule 5 and how did that number get populated in there?

Thanks,

[MichaelL1]

Ok, thank you for the information you supplied.

IN is denying any State income taxes withheld on the return filed.

This credit is generally from the W-2, in box 17.  Also make sure box 15 and 16 are correct also. 

Look at your W-2 and make sure that you have taxes withheld and that they are for IN and not another State.

This is why they denied the $2,212.  If you W-2 looks good, and it have IN taxes of $2,212, contact your employer and get a letter from them that this is correct and send your W-2 to IN with the correspondence you recived from them with the letter from your employer.

It appears you did your return correct in TurboTax (if that W-2 is correct).  

Your employer may not have submitted the information correctly to IN, 

IN may have input something a digit off, 

There are a number of reasons this may have had happened.

Good news is that if the W-2 is correct, you will be getting your money, it will just be a few weeks after you send in the information. 

[benny740]

Thank you for the quick response.
Box 17 on my W2 reads $1,689.49 which I verified that is what was recorded in Turbo Tax. Box 15 and 16 appears to be correct.

[MichaelL1]

Ok did you have any IN state taxes withheld from another source?
 If not, go back and Edit the W-2 section (in the Federal Part) in TurboTax, and look at box 14, as it appears that was entered incorrectly then.

[MichaelL1]

Make sure you don't have any other credits.  Here is the Sch 5  <a rel="nofollow" target="_blank" href="https://www.tax-brackets.org/indianataxforms/schedule-5">https://www.tax-brackets.org/indianataxform...>

[MichaelL1]

Did you print a copy of your IN return, that might be easier to see where the credits are from?

[benny740]

Here is what I am seeing. Box 14 on both my W2 and in Turbo Tax are blank. If I add my state and local paid taxes that equals the $2,212.00. Keep in mind that in Turbo Tax, I did enter the state tax in box 17 as $1,689.49 and local income tax, box 19 as $522.81. I do have a copy of my state in PDF form that I can refer back to.

[MichaelL1]

sorry I meant box 17 for state taxes, and then you have the county taxes in box 19.

[benny740]

Looking at the State tax form that I submitted to the state, page 5 (which is the Schedule 5) I am seeing the same numbers entered.

Line 1 Indiana state tax withheld $1689.00
Line 2 Indiana county tax withheld $523.
Line 9 Total credits $2,212.00

[MichaelL1]

So you will need to send that W-2 and a letter from employer it is correct to IN.

[MichaelL1]

Great so get a letter from employer and then send W-2 and that Sch 5, to the State of IN.  Many states are doing more cross-checks to prevent fraud and your return may have gotten caught up in this.

[benny740]

Okay, I will do that. Thank you!