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Anonymous
Not applicable

I lived & worked in OH and VT the entire year, but my mutual fund 1099 forms were mailed to my parents' address in Indiana. Can IN claim taxes on those dividends?

I have been on a company leadership development program for several years, rotating from one company location to another 6 months at a time. My "permanent" home address continues to be my parents' address while I am on this program, but I reside and earn income in other states. My question is whether Indiana can claim a share of state taxes on my non-earned income from mutual funds even though I did not reside in the state during the tax year.

1 Best answer

Accepted Solutions
Hal_Al
Level 15

I lived & worked in OH and VT the entire year, but my mutual fund 1099 forms were mailed to my parents' address in Indiana. Can IN claim taxes on those dividends?

No. That does not constitute IN source income. If you were a resident of another state(s), all year, you do not pay IN tax on your dividend income. Instead you report the dividend income on your OH & VT returns, allocating the income by when it was received.

BUT, You are probably a full year Indiana resident, based on your description.  Indiana will tax ALL your income.

You will file a non-resident return for VT, paying VT tax on your income earned there. IN will give a credit or partial credit for what you pay VT.

OH is a reciprocal state with IN. You will not need to file an OH return, unless there was OH withholding. Then you must file an OH return to get a refund. IN will not give you a credit for reciprocal state withholding.

However the reciprocity agreement does not apply to local city taxes. You are not required to file an Ohio local city return, but you are also not entitled to a refund of the city withholding (box19 on your W-2), unless there was an error in the amount. If school district income tax was withheld (instead of or in addition to city), you can get that refunded.

Indiana allows a deduction, up to $2000, for income taxed by an OH city. Some (but not all) IN counties also allow a credit, or partial credit for tax paid to an OH city. Those items will come up in the IN state interview.

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5 Replies
Critter
Level 15

I lived & worked in OH and VT the entire year, but my mutual fund 1099 forms were mailed to my parents' address in Indiana. Can IN claim taxes on those dividends?

They should not, where you receive your mail doesn't effect what states you file.
SweetieJean
Level 15

I lived & worked in OH and VT the entire year, but my mutual fund 1099 forms were mailed to my parents' address in Indiana. Can IN claim taxes on those dividends?

"My "permanent" home address continues to be my parents' address"
SweetieJean
Level 15

I lived & worked in OH and VT the entire year, but my mutual fund 1099 forms were mailed to my parents' address in Indiana. Can IN claim taxes on those dividends?

Critter
Level 15

I lived & worked in OH and VT the entire year, but my mutual fund 1099 forms were mailed to my parents' address in Indiana. Can IN claim taxes on those dividends?

Do you have your DL & Voter's registration still listed as your parent's address ?
Hal_Al
Level 15

I lived & worked in OH and VT the entire year, but my mutual fund 1099 forms were mailed to my parents' address in Indiana. Can IN claim taxes on those dividends?

No. That does not constitute IN source income. If you were a resident of another state(s), all year, you do not pay IN tax on your dividend income. Instead you report the dividend income on your OH & VT returns, allocating the income by when it was received.

BUT, You are probably a full year Indiana resident, based on your description.  Indiana will tax ALL your income.

You will file a non-resident return for VT, paying VT tax on your income earned there. IN will give a credit or partial credit for what you pay VT.

OH is a reciprocal state with IN. You will not need to file an OH return, unless there was OH withholding. Then you must file an OH return to get a refund. IN will not give you a credit for reciprocal state withholding.

However the reciprocity agreement does not apply to local city taxes. You are not required to file an Ohio local city return, but you are also not entitled to a refund of the city withholding (box19 on your W-2), unless there was an error in the amount. If school district income tax was withheld (instead of or in addition to city), you can get that refunded.

Indiana allows a deduction, up to $2000, for income taxed by an OH city. Some (but not all) IN counties also allow a credit, or partial credit for tax paid to an OH city. Those items will come up in the IN state interview.

View solution in original post

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