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March 19, 2021
Question

Non resident tax refund

  • March 19, 2021
  • 1 reply
  • 0 views

My employer paid income tax to a state I did not live in.
How do I report full refund from no-resident state to resident state?

I live in Florida and Indiana state tax was withheld

I filed electronically and they did not process the refund - they say because the W-2 shows Indiana income I have to pay, even though I show I am 100% year resident of Florida

Any ideas how to get this resolved?

    1 reply

    March 21, 2021

    If you worked in Indiana, you must pay Indiana state income tax.  If you did not work in Indiana, you must file an Indiana tax return and report zero (0) IN income in the allocation section.  This will get your refund. 

    tmbrettAuthor
    March 23, 2021

    Indiana doesn't seem to agree,  makes no sense-  they said since w-2 says it's Indiana wages,  tax is due, or get employer to correct the w-2.  Isn't that the whole purpose of the non resident tax form, to get back taxes paid to the wrong state?   Anyone else deal with this problem with Indiana?   I can't get a reply from tax advocate office or via email.   So frustrating!!!

    AmyC
    Employee
    March 26, 2021

    IN law says: 

    Nonresidents. Individuals must file if they receive income from Indiana sources.

     

    The question then becomes, was your income from an IN source?

     

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