Tax withheld for wrong state

[Frogsmil16]

My employer reported state taxes to IL for only one paycheck but did not withhold anything. The rest of the paychecks for the year were reported to IN and taxes were withheld. We did not live in IL for any of 2019 so nothing should be owed there and it should all be paid to IN. So my question is, since no taxes were actually sent to IL and we did not live there at all in 2019, do I still need to file anything for IL? My other question is how do I make sure that I pay the proper amount to IN since it was not all reported to them? I've already contacted my employer and they said there's nothing they can do. 

[Hal_Al]

You say where you lived but don't say where you worked or why IL income was reported for one pay period.

I'll assume it was only an employer error and you did not work in IL. You do not need to file an IL return*.

You also say "tax withheld for wrong state" but "did not withhold anything". I assume you meant they just reported the wages to the IL dept of revenue.

"How do I make sure that I pay the proper amount to IN"? .  First be sure you answer no, when asked in the federal personal section if you made money in another state.  The entire amount of your income should transfer to the IN return and you do not need to do anything.

If that does not happen, you will need to use a work around. At the W-2 screen do not enter your W-2  exactly as received. Instead enter all wages in box 16 on the line with "IN" in box 15.  On the line with IL in box 15, enter 0 in box 16 (or just don't enter the IL line at all).

*Because IL gets a copy of that W-2, there is a change you'll hear from them, but you should be able to explain it away, since you will have paid IN tax on all your income.

[Anonymous]

there is no reciprocity between Il and In.  if you lived in and worked in In,  your W-2 should have reflected all wages during the year.  the problem is the Il W-2.   If it were me, I would ask my employer tio issue a corrected W-2  showing all wages as In and $0 wages for Il.   Thus you'll be able to avoid having to deal with Illinois.  

[SusanY1]

No, since you lived only in Indiana, you will not be required to file a return in Illinois, as long as you also didn't work in Illinois.    

To make sure that you have paid enough tax to Indiana, you will complete and file your Indiana tax return.  If the error on your paycheck caused you to pay in too little tax, TurboTax will calculate the remaining balance that you owe to Indiana and give you instructions for how to pay the balance. 

If you did work in Illinois but lived in Indiana, you will need to file a non-resident return for your Illinois-source income.  If this applies to you, TurboTax will walk you through the steps to prepare both returns. Tip: be sure to start your nonresident (Illinois) state return first.