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Can we edit county tax? I am filing as nonresident IN tax and didn't stay or worked in IN on 1st Jan2022, still in state tax is taking the default county tax as $50

I was full year resident in different state. I am filing as nonresident IN tax and didn't stay or worked in IN on 1st Jan2022, still in state tax is taking the default county tax as $50. Can we edit county tax value to 0?
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8 Replies
ErnieS0
Expert Alumni

Can we edit county tax? I am filing as nonresident IN tax and didn't stay or worked in IN on 1st Jan2022, still in state tax is taking the default county tax as $50

You don’t say what Indiana county withheld your tax, so I can’t tell you whether $50 is correct or not. 

 

You cannot override any values in TurboTax Online. You can print your form and change the numbers and mail your return.

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Can we edit county tax? I am filing as nonresident IN tax and didn't stay or worked in IN on 1st Jan2022, still in state tax is taking the default county tax as $50

Its bartholomew county. I had bonus payout in my 2022 w2 which from 2021 when i was Indiana resident. But I never stayed in 2022 in Indiana. As per Indiana County tax you need to either live or work on 1jan 2022 to be eligible for county tax. But turbo tax is taking $50 as county tax which for Indiana for 2022.

ErnieS0
Expert Alumni

Can we edit county tax? I am filing as nonresident IN tax and didn't stay or worked in IN on 1st Jan2022, still in state tax is taking the default county tax as $50

When I run your situation through TurboTax my Indiana county tax comes to $0. You can set your county wages to $0 on your W-2.

 

If this was a bonus payout for work performed in Indiana it is taxable by the state, but not the county. The following types of income of a nonresident are directly allocated to Indiana:

 

“Salaries, wages, fees, commissions, and all other types of income received by a nonresident employee for services performed in Indiana.”

 

Nonresident Individual Filing Requirements

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Can we edit county tax? I am filing as nonresident IN tax and didn't stay or worked in IN on 1st Jan2022, still in state tax is taking the default county tax as $50

county wages are 0 already in W2. For state, even if I am declaring that I was living out of state on 1st Jan 2022 turbo tax is taking that I was staying on 1st Jan 2022. I find out this when I see the the draft hard copy. There is issue in the turbo tax app. how to resolve this, how I need to contact ?

AmyC
Expert Alumni

Can we edit county tax? I am filing as nonresident IN tax and didn't stay or worked in IN on 1st Jan2022, still in state tax is taking the default county tax as $50

If you live OR work in an Indiana county, you will probably owe county tax. If you are filing a nonresident return, you must have IN wages. 

 

If you live in a reciprocal state, see page 54 of the IT-40 NPR booklet for special nonresident filing instructions. You would only owe county tax and no state tax.

 

To get the booklet, click here and select.

 

@utsaviiitckumar 

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Can we edit county tax? I am filing as nonresident IN tax and didn't stay or worked in IN on 1st Jan2022, still in state tax is taking the default county tax as $50

hi @AmyC ,

 

I didn't live or work in Indiana in 2022. I had bonus payout in my 2022 w2 which from 2021 when i was Indiana resident. But I never stayed in 2022 in Indiana. As per Indiana County tax you need to either live or work on 1jan 2022 to be eligible for county tax

Can we edit county tax? I am filing as nonresident IN tax and didn't stay or worked in IN on 1st Jan2022, still in state tax is taking the default county tax as $50

Hi @ErnieS0 

 

county wages are 0 already in W2. For state, even if I am declaring that I was living out of state on 1st Jan 2022 turbo tax is taking that I was staying on 1st Jan 2022. I find out this when I see the the draft hard copy. There is issue in the turbo tax app. how to resolve this

KrisD15
Expert Alumni

Can we edit county tax? I am filing as nonresident IN tax and didn't stay or worked in IN on 1st Jan2022, still in state tax is taking the default county tax as $50

You can check with the former employer and ask why County Tax was not withheld. 

 

My understanding (and apparently TurboTax's) is that the location of the place of work or business (or Taxpayer residence) determines the county tax due. 

I understand that you did not physically go to work, but that bonus is based on work performed in that county.

The county would argue that the fact that your employer did not make the payment until you moved does not alter that fact that that the income was derived from employment in that county.

 

It would be the same as working December 31 2021 and getting a W-2 for that income in 2022. You might have moved Jan 1, but that w-2 income would be taxable by the state, and county, in which you lived and/or worked in Dec 2021. 

The Bonus was paid in 2022, you had already moved, but the business (employer) hadn't. The county will still tax that income. 

 

“Both the county of residence and the county of principal business or employment of an individual are determined on January 1 of the calendar year in which the individual’s taxable year begins. If a person resides in an Indiana county on January 1, or resides out-of-state on January 1, but has his or her principal place of work or business in an Indiana county as of January 1, he or she is subject to county tax at the rate corresponding to that Indiana county.”

“If the employee resides out-of-state on January 1 but has his or her principal place of work or business in an Indiana county as of January 1, then the withholding agent should withhold for the Indiana county of principal place of work or business.”

 

County Tax 

 

 

 

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