Non-residential tax liability - Indiana

Forum|Forum|11 months ago
April 7, 2025
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My total income earned last year was around $7800. I was living in Illinois but was working in Indiana. I actually worked for (meaning actually at my place of employment) less than 30 days. I filed my Indiana state tax return and they said they were unable to verify this and only sent me a portion of my expected refund. A representative from the DOR in Indiana said that this was because I wasn't working for a company in Illinois who sent me to Indiana to work. I researched Indiana DOR Bulletin #28 and could not see how I didn't meet their eligibility requirements.

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DaveF1006

Yes, it states in Indiana DOR Bulletin #28, Income received from Indiana sources is considered Indiana income to nonresidents. There are exceptions but I don't think your income follows under one of these exceptions. read the section in the bulletin that addresses Income Received from Indiana Sources.

Part of income tax paid to Indiana may be a county tax that was assessed, in addition to the state income tax. Yuo can look on the Indiana It-40 NR on line 9 to verify this.

One saving grace, if you file an Illinois resident tax return, you may receive an Illinois Earned Income Credit, which would help make up for some of the tax refund that you expected to receive.

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Kcarpe2007Author

Thank you for your response. My issue is specifically the "30-day safe haven" rule (whether this is unique to Indiana, I do not know). Please read the other factors involved here. I worked less than 30 days at this place of employment in Indiana. That is what I was addressing. I see nothing in Bulletin #28 that would disqualify me from this "30-day safe haven" exemption. Further, I have filed an Illinois state tax return. The only result from what I remember from that return was that I was not required to pay any taxes to Illinois. I have no other income from any other source or state for 2024.

Vanessa A

I filed my Indiana state tax return and they said they were unable to verify this and only sent me a portion of my expected refund.

In the DOR Bulletin #28, I do not see anything specifically addressing where the employer needs to be based. It only states that you have to work in IN for less than 30 days. You can ask the DOR for the code that states that you must be employed by an employer based in IN. If they provide that to you, then you have your answer.

If they cannot, then you can appeal the decision as long as you do it within 60 days. If you do appeal, then be prepared to PROVE that you worked less than 30 days in IN. A letter from the employer could help.

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