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WHY DO I OWE STATE TAX?
We cannot see your tax return. The most common reason for owing state tax is that you did not have enough state tax withheld from your paychecks during the year. Double check all of the amounts you entered from tax documents such as your W-2's---look carefully at boxes 16 and 17. Look for misplaced decimals and extra zeros. Print a copy of 2023 and 2024 state returns and compare them side by side, line by line to spot the difference(s).
Your state refund is based on the income you made and the state tax you have already paid in. You may qualify for additional DOR: Credits. IN is a flat tax (3.23%) state so you either lost some credit or didn't have enough withheld or both. You may have typed a number wrong, so double check those.
You can check your paychecks and w2s. Look at your taxable income and your state tax withheld. Grab your phone, pull up your calculator and input:
state tax withheld divide income times 100. The answer should be over 3.0 since the state tax after exemptions and deductions is 3.23%. If you want a refund, have more taken out of your paycheck. The more you have taken out, the bigger your refund -and the less money in your pocket each paycheck.
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