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Hi and welcome to Just Answer!State income taxes are based on both - the source of income and on residency.Because your father was a part year resident of Massachusetts and a part year resident of Indiana - you need to file income tax returns for both states.
Income taxes for Indiana are calculated for income received while he was a resident of Indiana - from 4/1/2012 to 7/14/2012.
and correspondingly - for Massachusetts from 1/1/2012 to 3/31/201.