Monroe County Income Tax for 2022

[RickatB5]

While preparing my 2022 taxes with the free version of TurboTax I found that the incorrect rate was being used. Monroe County Indiana increased its local tax effective October 1, 2022 and TurboTax is applying this new rate to my income for the entire year. I prepared my Indiana tax return manually using forms on the Indiana Gov website and they are using a different rate (I'm assuming the correct one). Will this be changed or should I just file a paper return for my state taxes?

[Anonymous_]

This has been reported. I believe there are issues with other counties as well (at least one other county).

[w_sparkle]

Has this been corrected? Or should I use another service besides TurboTax?

[AnnetteB6]

Based on the Indiana Form CT-40 and the county tax rate table included, TurboTax is computing the county tax using the correct rates.  

The county tax rate table for Boone, Johnson, Knox, LaPorte, and Monroe counties shows that the rate has changed since last year.  The value shown in the table is a blended or prorated tax rate that considers the previous lower rate for 9 months of the year and the new higher rate for 3 months of the year.  So the tax rate in the table will not exactly match either the old rate or the new one -- it is somewhere in between.  

For your reference, here is a link to the Indiana Form CT-40 and county tax rate table.

@RickatB5  

@w_sparkle