2021HC
Returning Member

State tax filing

I moved on Jul 1 2020 from TX to IN and I did not file a return in 2019 for IN.  I also did not live in or work in an indiana county as of Jan 1 2020 that has a county tax.

 

However I am still being charged a large county tax in Indiana.  Can this be explained?

The help tab on this says no county tax should be levied.....

Nonresidents who lived and worked outside Indiana on January 1, 2020 are not subject to Indiana county tax for the entire year even if they moved to Indiana or started working in Indiana on January 2.

 

Thanks.

 

 

REPLY TO:::::::

Actually, that's not necessarily correct.  It depends on when you lived or worked there.

Part-year residents and nonresidents have to file Schedule CT-40PNR, which can be found on the Indiana 2020 Individual Income Tax Forms page, to compute county tax if, on January 1, 2020, the taxpayer (and their spouse, if filing jointly) lived in or worked in an Indiana county that has a tax.

 

 

Below is the Indiana County Tax as described in Turbo Tax:

Indiana County Tax

The Indiana county tax is calculated as a percentage of your income similar to how the state tax is computed and is based on the county you lived in on January 1, 2020.

If you did not live in Indiana on January 1, 2020 then you are not subject to Indiana county tax unless you worked in Indiana on January 1, 2020, in which case the county tax is calculated based on the county of employment.

Nonresidents who lived and worked outside Indiana on January 1, 2020 are not subject to Indiana county tax for the entire year even if they moved to Indiana or started working in Indiana on January 2.