If I live in Ohio but worked in Indiana with Indiana state taxes paid, do I have to pay Ohio state taxes?

[beckyallen1019]

Need to delete Ohio State tax off my turbo tax file

[JulieCo]

If you live in Ohio, you need to file a tax return and pay income taxes on all of your earnings worldwide.  Plus, typically you also have to file a tax return for the state where your work.  But Indiana and Ohio have reciprocal agreements between the two of them which means they exempt workers who live in one state and work in the other from having to pay taxes for the state where they work.

So your employer should not be withholding Indiana taxes if you live in Ohio. They should be withholding Ohio taxes.  To correct this, you need to fill out this exemption form and give it to your employer to give them notice to withhold for Ohio:  WH-47

But, for 2018, you will need to file a return in BOTH states.  You will need to file a non-resident return in Indiana and enter that your earnings for the state was $0 so that you get refunded all the taxes withhold from Indiana during 2018.  Plus, you will need to file a resident return for Ohio.  You will owe taxes for your income since nothing was withheld for Ohio in 2018. 

See information below about filing a non-resident return in TurboTax:

https://ttlc.intuit.com/replies/3302052

[Hal_Al]

Ohio has a reciprocal agreement, on wages,  with all neighboring states. No state taxes are withheld or due and you do not normally need to file a return for the other state (MI, PA, KY, WV, IN). But OH will tax you on your other state income.

If other state taxes are mistakenly withheld, you then have to file a return, for the other state, to get a refund. OH will not give you a credit. You should ask your employer to stop withholding so you don't have to file a IN return every year.

However the reciprocity agreement does not apply to local county income tax.  You can not get those refunded, but if you live in an Ohio city with a tax, they may give you a credit or partial credit. Many do.  You need to check with your city.

[violettaprincess]

I live in OH and work in IN. My former employer took out county taxes for Allen county IN. My current employer, while still in Allen County, is NOT taking out county tax. Is this something I should worry about or will owe?

[Hal_Al]

@violettaprincess  Yes, you are subject to Allen County income tax because you work there. Talk to you employer about withholding. 

Reference: https://www.in.gov/dor/files/dn01.pdf

If your employer fails to withhold the proper tax, you will have to file state IN state tax return to pay the county income tax. The good news is there is a simplified form for this purpose

"Residents of Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin who have Indiana source wages are not taxed on those wages in Indiana for state income tax purposes. However, those wages are still subject to Indiana county income tax, assuming the taxpayer was employed in an Indiana county as of January 1 of the tax year. Instead of filing Form IT-40PNR, taxpayers may file Form IT-40RNR, a wages-only return, in order to calculate the county tax if they meet certain conditions".

Get the form here: https://www.in.gov/dor/individual-income-taxes/filing-my-taxes/choosing-the-right-tax-form-to-file/

I don't know if TurboTax supports that form