Indiana County Tax

[hearlt]

I am a partial year resident for 2020.  Your directions state a partial year resident does not pay county tax.  I believe I substantiated this via a web search.  The Deluxe version of Turbo Tax is adding County Tax in when it does the form.  I cannot change it.  Will you confirm / verify what is correct and tell me how to correct it?  Thank you.

[JohnW152]

Actually, that's not necessarily correct.  It depends on when you lived or worked there.

Part-year residents and nonresidents have to file Schedule CT-40PNR, which can be found on the Indiana 2020 Individual Income Tax Forms page, to compute county tax if, on January 1, 2020, the taxpayer (and their spouse, if filing jointly) lived in or worked in an Indiana county that has a tax.

[2021HC]

I moved on Jul 1 2020 from TX to IN and I did not file a return in 2019 for IN.  I also did not live in or work in an indiana county as of Jan 1 2020 that has a county tax.

However I am still being charged a large county tax in Indiana.  Can this be explained?

The help tab on this says no county tax should be levied.....

Nonresidents who lived and worked outside Indiana on January 1, 2020 are not subject to Indiana county tax for the entire year even if they moved to Indiana or started working in Indiana on January 2.

Thanks.

REPLY TO:::::::

Actually, that's not necessarily correct.  It depends on when you lived or worked there.

Part-year residents and nonresidents have to file Schedule CT-40PNR, which can be found on the Indiana 2020 Individual Income Tax Forms page, to compute county tax if, on January 1, 2020, the taxpayer (and their spouse, if filing jointly) lived in or worked in an Indiana county that has a tax.

Below is the Indiana County Tax as described in Turbo Tax:

Indiana County Tax

The Indiana county tax is calculated as a percentage of your income similar to how the state tax is computed and is based on the county you lived in on January 1, 2020.

If you did not live in Indiana on January 1, 2020 then you are not subject to Indiana county tax unless you worked in Indiana on January 1, 2020, in which case the county tax is calculated based on the county of employment.

Nonresidents who lived and worked outside Indiana on January 1, 2020 are not subject to Indiana county tax for the entire year even if they moved to Indiana or started working in Indiana on January 2.

[DanielV01]

You will need to review your entries in the Indiana tax interview.  You are specifically asked the questions in which county you were living in on January 1, and which county you were working in on January 1.  Make sure that both of these boxes are marked "Out of State (Other or blank)".  If either box has an Indiana county input inside of it, tax will calculate in the program.  Double-check those entries, and comment if that doesn't resolve the issue.  You are correct that if you were not living in or working in an Indiana county on January 1, you are not subject to Indiana county tax.

[2021HC]

It looks like I did not see that I had selected that and that I had the selection marked saying I lived in IN on 1 Jan 2020 when I did not.

That makes a big difference but I didn't see that before as being wrong for some reason so it shows how to be very careful how you make your selections.

Thanks for the input as that was very helpful!