Living in IL but having to pay large amount of IN taxes

[dksellschicago]

Hello,

We live in Illinois but my wife works in indiana, she is a w-2 employee and has taxes taken out. This isnt a full time job for her and she only made about $12k last year and paid $378 in state taxes to IN. When I filed we now owe an additional $358 in IN state taxes. How is this possible? 

[Mike9241]

for 2022 your wife's wages are taxable for both IN and IL. on IL you get a credit for taxes paid to IN

IN form is IT-40PNR. make sure only her wages and any other IN source income show up on schedule A for IN. 

[HelenC12]

Indiana has a flat 3.23% individual income tax rate. There are jurisdictions that may collect local income taxes, too.

Check your state income allocations. Perhaps you entered something incorrectly. 

To ensure accurate calculations, always complete the non-resident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.

[dksellschicago]

Thanks, yea i did the non-resident first, she also got hit for local county tax there as well. Im going to tell her to find another job