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February 7, 2025
Question

Married filing jointly, different state(s) income.

  • February 7, 2025
  • 2 replies
  • 0 views

We both have residency and are homeowners in Indiana. I work full time out of state and my spouse works full time in Indiana. In 2024 I worked in Missouri and Illinois so I file state income for MO, IL and IN. 

 

How do I go about not having the state of Indiana tax all of just my income when non of it was earned in state?

    2 replies

    Employee
    February 7, 2025

    All of your income IS taxable by Indiana since it is your resident state.  But you'll be able to claim a credit on your Indiana return for the taxes you pay to non-resident states, so you won't be double-taxed.

     

    Your resident state can tax all your income, regardless of where you earn it.

     

    In TurboTax, be sure to complete both of your non-resident state tax returns before you do your Indiana return, so that the program can calculate and apply the credit.

    **Answers are correct to the best of my ability but do not constitute tax or legal advice.
    February 7, 2025

    An Indiana resident has to report all income, regardless of where you earned it.  You can receive a credit for the taxes you paid to the nonresident states.  See Credits.

    In TurboTax, you will be able to indicate the taxes in the state section.