I work in Illinois but live in Indiana, I have my employer withhold money every pay period for Indiana taxes, where do I enter this amount

Forum|Forum|7 years ago
June 4, 2019
5 replies
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Best answer by DanielV01

Correct. On the W-2 entry screen, you will enter the Federal and IL information as it appears on the first page, and then click Add another line to the state information, then add the box 15-17 Indiana information on page 2 of your W-2, and afterwards, any local information in boxes 18-20. (Make sure you associate any local taxes with the correct state). Treat all of the pages as if they were one combines W-2 form (because, in reality, they are)

You were wise in doing this. While Indiana does give you a credit for taxes paid to Illinois, this credit may not cover all of the Indiana taxes. In addition, if you pay local tax to Illinois, Indiana will give you a credit for the local taxes paid as well. Here is a screenshot to assist you, from the Indiana State Taxes section, under Other Credits and Deductions, (make sure you click box for "Local taxes paid to another State")

DanielV01

Level 15

Is the amount included on your W-2?

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F

fisher28Author

Level 2

Yes I actually revive a separate W2 for Indiana, my W2 with my federal information has my Illinois information on it.

F

fisher28Author

Level 2

Thank You!

DanielV01

Level 15

You're quite welcome.

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DanielV01Answer

Level 15

Correct. On the W-2 entry screen, you will enter the Federal and IL information as it appears on the first page, and then click Add another line to the state information, then add the box 15-17 Indiana information on page 2 of your W-2, and afterwards, any local information in boxes 18-20. (Make sure you associate any local taxes with the correct state). Treat all of the pages as if they were one combines W-2 form (because, in reality, they are)

You were wise in doing this. While Indiana does give you a credit for taxes paid to Illinois, this credit may not cover all of the Indiana taxes. In addition, if you pay local tax to Illinois, Indiana will give you a credit for the local taxes paid as well. Here is a screenshot to assist you, from the Indiana State Taxes section, under Other Credits and Deductions, (make sure you click box for "Local taxes paid to another State")

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"