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March 1, 2021
Question

Why was my Indiana state refund of X,XXX.00 only paid in the amount of $XXX.00? Should I expect the balance at a later date? I work in Indiana but live in Illinois.

  • March 1, 2021
  • 1 reply
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All lines and fields match the appropriate counties, states and amounts on the W-2.

1 reply

AmyC
Employee
March 2, 2021

Contact the Indiana (IN) state department.

You filed IN state return with tax liability showing, subtracted out your payments and had a $x,xxx refund due. You did not receive your full refund. The state should have sent you a letter explaining why they adjusted your refund.

When you filed your resident state, you filed for a credit against the tax paid to IN. Your resident state taxes all income but gives a credit for income taxed by the other state.

 

IN and IL are not reciprocal states and taxes must be paid to each state. See Reciprocal Agreement.

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