Q. Which state do I put as my state of residence?
A. Ohio.
Out of state students are still residents of their home state. Being away at college, is just a temporary absence, even if you live off campus.
The way it usually works, when you work in the college location state, you pay tax to the work location state. You also pay tax to your home state and claim a credit for the tax to the work state.
In your case, Ohio & Indiana have a "reciprocal" agreement and you do not pay IN state income tax. Your employer should not be withholding IN state tax.
If IN state taxes are mistakenly withheld, you then have to file an IN non-resident return, to get a refund. OH will not give you a credit. You should ask your employer to stop withholding so you don't have to file an IN return every year. On the IN non-resident return, you indicate zero Indiana income.
The reciprocity agreement does not apply to local county taxes. You can not get withheld county income tax refunded. But if you live in an Ohio city with an income tax, the OH city may give you a credit or partial credit, for the tax paid to the IN county. Many do. You need to check with your city.
