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Level 2
posted Apr 7, 2021 3:37:37 PM

Rejected Indiana State Return

I received this error when I tried to file Indiana State Return:

Description of error:
FIT40RNR-012-002: If Line 8 of the IT40RNR, CountyTaxWithheld is not null or zero, it must equal sum of local tax withheld amount(s) on all wage statements. Other withholding not on an Indiana-supported wage statement is not included.

What needs to be done:
This Indiana state return is rejected due to incorrect filing. Indiana Form IT-40RNR is only for full year residents of Kentucky, Michigan, Ohio, Pennsylvania, or Wisconsin, whose income from Indiana sources is only from wages, salaries, tips or commissions. While unemployment compensation from Indiana sources received by an Indiana nonresident is not subject to tax in Indiana, you must file Form IT-40PNR to claim a refund of ANY Indiana state/county withholdings. Please review the reason for the reject. If necessary, make the appropriate change and re-submit this return electronically. However, if the reject continues, you may want to file this return via U.S. Mail. To file your state return, print it and mail to the appropriate taxing authority.

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ALSO THIS REJECTION:

Description of error:
FIT40RNR-009-002: If Line 7 on the IT40RNR, TaxWithheld is not null or zero, it must equal the sum of state tax withheld amount(s) on all wage statements. Other withholding not on an Indiana-supported wage statement is not included.

What needs to be done:
This Indiana state return is rejected due to incorrect filing. Indiana Form IT-40RNR is only for full year residents of Kentucky, Michigan, Ohio, Pennsylvania, or Wisconsin, whose income from Indiana sources is only from wages, salaries, tips or commissions. While unemployment compensation from Indiana sources received by an Indiana nonresident is not subject to tax in Indiana, you must file Form IT-40PNR to claim a refund of ANY Indiana state/county withholdings. Please review the reason for the reject. If necessary, make the appropriate change and re-submit this return electronically. However, if the reject continues, you may want to file this return via U.S. Mail. To file your state return, print it and mail to the appropriate taxing authority.

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1 Best answer
Expert Alumni
Apr 8, 2021 10:29:10 AM

To fix this, go back to the beginning of the Indiana state interview, and change the type of return from a Nonresident Reciprocal Return to a standard Nonresident return.  Indiana is requiring this form to be filed because of the unemployment.  Neither your earnings nor your unemployment is taxed in Indiana, but you must file the standard Nonresident Return, instead of the Reciprocal Return, in order to claim it.

4 Replies
Expert Alumni
Apr 8, 2021 10:29:10 AM

To fix this, go back to the beginning of the Indiana state interview, and change the type of return from a Nonresident Reciprocal Return to a standard Nonresident return.  Indiana is requiring this form to be filed because of the unemployment.  Neither your earnings nor your unemployment is taxed in Indiana, but you must file the standard Nonresident Return, instead of the Reciprocal Return, in order to claim it.

Level 2
Apr 10, 2021 11:30:18 PM

Thank you so much! You were spot on!

New Member
May 15, 2021 6:40:52 AM

had the same issue, but once i changed this, my refund went from $0 before to $900+ after the change. Can that be right?

Level 2
May 16, 2021 7:37:41 PM

I want to say yes. If I remember correctly, it bumped up what I got back a good portion, when I changed it.