I have county taxes listed on my W-2 in Indiana but the state return is "estimating" and deducting another amount. Why am I having to pay it twice?

[SabrinaD2]

Indiana is calculating your county tax separately from what's shown on your W-2, which can make it seem like you're paying twice. However, the state is actually reconciling the total amount you owe. Here's a clearer breakdown:

1. County Taxes on W-2: These are the amounts withheld by your employer for county taxes, shown in Box 19 of your W-2.
2. State Tax Estimation: Indiana calculates your total tax liability, including both state and county taxes, based on your income and county of residence. If your withholdings were insufficient, you might owe more

To avoid this in the future, consider adjusting your withholdings or making estimated tax payments throughout the year. You can find more details on the Indiana Department of Revenue's website.