I am a college student and had a summer internship where I earned income in Ohio where I am a resident. Moved to indiana with company and earned there. How do i file?

[job13]

I was wondering if I should file twice? I live in ohio, worked in ohio, then recieved an opportunity to work for the same company on internship at their hq in indiana. Not sure exactly how to file?

[DexterS · Accepted solution]

You're in luck.  Ohio and Indiana have reciprocal tax agreements.

That means that they have agreed not to tax each others residents. So you don't have to file an Indiana tax return.

Hopefully, your employer only withheld Ohio taxes.  If they withheld Indiana taxes you'll have to file an Indiana tax return to get your withholding back.

[job13]

Okay great! The state income tax has a value in it on my W2 from indiana, I suppose that means they withheld that amount for indiana taxes? If so do i just make two separate filings on turbotax one for my ohio income and one for my indiana? Sorry im new to filing taxes.

[DexterS]

If Box 15 shows IN and there's an amount in Box 17, they withheld IN taxes.

You prepare a non-resident Indiana tax return and on your W-2 delete the amount you entered for Indiana income.  Leave the withholding amount in there.

You want your Indiana return to show $0 of Indiana income.  That will get you a refund of all your Indiana withholding.

Your Ohio return is a regular full-year resident tax return.  Ohio will tax you on all your income as an Ohio resident.

[job13]

Thank you! So where do I put my indiana income? do I just not put it into the form where I enter in all of my information? And one more dumb question.. Are you saying I file my taxes (Go all the way through the steps on turbo tax ) based on my ohio income and submit that then start over with my indiana info? Or just put zero for my income on the w2 form on turbo tax for the indiana w2 and have both in the same filing?

Thanks in advance!

[DexterS]

Yes,  you're going to do both in the same filing.  You do one Federal Filing with an Ohio and an Indiana returns at the same time.  TurboTax will send the appropriate forms to the appropriate states.

On your Ohio TurboTax W2 input screen you'll list your OH income in box 16, and your OH withholding in box 17, just as it they appear on your W2.  On you Indiana TurboTax W2 input screen you'll put nothing in box 16 and whatever appears on our W2 in box 17.

The only thing that's different from your paper forms is you're not going to enter any IN income in box 17 of the W2 with the IN withholding.

Because OH is your state of residence all your income will flow there even though you didn't list any income to a state on our 2nd W2. 

You don't have any IN income to tax because the states have agreed to that.

Your state of residence automatically gets all your income to tax.