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March 12, 2025
Question

Indiana recomputed Tax Due Form IT-40RNR

  • March 12, 2025
  • 1 reply
  • 0 views

I paid for Turbo Tax Indiana and filed electronically, also at cost to Indiana.  Part of my wife's income was earned in Indiana, but we are full time Michigan residents.  Indiana is supposed to have tax reciprocity with Michigan.

My refund was supposed to be $923.00 but Indiana refunded only $588.00.

 

Indiana sent a letter stating that $335.00 was due to Porter County Tax.   I believe the Letter from Indiana Dept. of Revenue is incorrect and that she should receive the Porter County Tax as a refund.  

 

What should be included in the appeal to in.gov/dor/legal-resources/appeals to obtain her full refund?  

 

If this is an error in the Turbo Tax Indiana Form IT-40RNR, please correct and advise.

 

Thanks,

    1 reply

    Hal_Al
    March 13, 2025

    "Indiana sent a letter stating that $335.00 was due to Porter County Tax.   I believe the Letter from Indiana Dept. of Revenue is incorrect and that she should receive the Porter County Tax as a refund"

     

    No.  The reciprocal agreement does not apply to local taxes, county or city.  Indiana resident who work in a MI city with an income tax  have the same situation.

     

    But, the good news is: MI will give you a credit for the county tax you pay to IN, on the MI state return. 

    March 13, 2025

    Thanks. Sounds like Turbo Tax got it wrong!  I submitted exactly as it was computed.  So do I now have to file an amended form to Michigan?  Seems like Turbo Tax should have done it right for what they charge.   

    Disappointing.

    Hal_Al
    March 13, 2025

     Q. So do I now have to file an amended form to Michigan? 

    A. Yes, if you want that credit.