How does Indiana tax remote workers?

There are a few situations to consider. You may fall into more than one category.

1. I lived in Indiana.
• If you're considered a full-year or part-year resident of Indiana, you'll be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.
2. I worked remotely from Indiana.
• Indiana taxes income earned for personal services performed while in Indiana (even if you're a nonresident). This includes remote work for an employer or clients based outside Indiana if you were physically in the state while doing the work.
• You may be able to claim a credit for taxes paid to another state on your resident return for any income required to be reported in multiple states. There is an exception for full year residents of Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin. You will need to file Form IT-40RNR if you live in these states and have Indiana state income.
3. My employer was based in Indiana.
• If your employer was based in Indiana, they may have withheld Indiana taxes from your wages as shown on your W-2. However, as long as you didn't live or work in Indiana, you will not owe Indiana taxes on those wages and can file a nonresident return to claim a refund of those withholdings.
• If your employer didn't withhold Indiana taxes and you were a nonresident of Indiana, you probably don't need to file an Indiana return at all unless you otherwise have an Indiana nonresident filing requirement.

If your wages were minimal and you didn't do any other business in Indiana, it's possible you will be exempt from filing regardless of residency. See the Indiana IT-40 instructions for more information.