I am filing a non-resident state return for Indiana. I am retired but had some preferred/deferred company shares I cashed in in 2024. Indiana considers this Indiana income despite being a non-resident, which I'm fine with. However, TurboTax will not let me enter this income if I say I worked zero days in Indiana in 2024 and will not let me e-file. How do I resolve?
I completed a mock IT-40PNR return and didn't get an error message when I input 0 days worked in Indiana, even when allocating income to the state.
Please confirm you selected Out-of-state on the screen, Your County of Employment. This follows the screen, Days Worked in Indiana, in which you referred to in your question. As per the TurboTax screen, if on January 1, 2024, you were retired, unemployed, a student, or a homemaker, select the county where you lived as your county of employment.
The TurboTax tips says otherwise. I'm not sure where else to look
I also created a test non-resident Indiana tax return, and I see the same message that "your W-2 Wages should be 0 since you indicated that you worked in Indiana 0 days". But the Indiana amount from the W-2 that I entered on the Federal return carries over to that box in the Indiana return, and if I click Continue, the income is reported on my Indiana Nonresident return. I also can edit the amount in that box if I need to. It would appear that that message is just a reminder, and you are free to ignore it.
You are misunderstanding. This is the error TurboTax is flagging. You say I can ignore, ok, but then it comes back during the review as an error - the same verbiage as in that text box - and will not let me e-file as it is an 'error'. As far as I can tell I have the information entered correctly but it continues to flag this as an error regardless.
I cannot ignore and pass an error check. TurboTax finds the 'error', makes me go back to that area and specifically states that since I said neither of us worked in Indiana during 2024 and entered something other than 0, it flags as an error during the final check. Would it possibly make a difference since this income was reported on a W-2 and not a 1099?
It sounds like you are failing a logic test for the return in between those questions. Since all of this income is reportable to Indiana, you can enter 1 in the box for the days worked in IN and then when you get to the screen asking about the wages you will be able to enter the entire amount. Otherwise, it will not let you continue through. You would have to print and mail you return. Entering 1, will not affect your return in any way. You will still be a non-resident and still only be claiming the income you should be claiming.