Solved: State taxes...i live in Indiana and work in Ohio
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sray454
New Member

State taxes...i live in Indiana and work in Ohio

 
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TomD8
Level 15

State taxes...i live in Indiana and work in Ohio

If you work in Ohio and are a full-year resident of Indiana, you do not have to pay Ohio income tax on your W-2 wages.  The two states have tax reciprocity.  For tax purposes, your Ohio wages are considered Indiana income, and are fully taxable by Indiana.  In TurboTax Personal Info, you would answer No to the question about earning income in another state.  Tax reciprocity applies only to W-2 wages, not to other types of income.

However, if your employer mistakenly withheld Ohio state taxes from your pay, you'd have to file an Ohio non-resident tax return (showing zero Ohio income) in order to get those taxes refunded.  And if that's what's happening, you should also file Ohio Form IT-4NR with your employer.  Here's a link to that form:  http://www.onu.edu/files/wth_it4nr.pdf0_.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

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5 Replies
TomD8
Level 15

State taxes...i live in Indiana and work in Ohio

If you work in Ohio and are a full-year resident of Indiana, you do not have to pay Ohio income tax on your W-2 wages.  The two states have tax reciprocity.  For tax purposes, your Ohio wages are considered Indiana income, and are fully taxable by Indiana.  In TurboTax Personal Info, you would answer No to the question about earning income in another state.  Tax reciprocity applies only to W-2 wages, not to other types of income.

However, if your employer mistakenly withheld Ohio state taxes from your pay, you'd have to file an Ohio non-resident tax return (showing zero Ohio income) in order to get those taxes refunded.  And if that's what's happening, you should also file Ohio Form IT-4NR with your employer.  Here's a link to that form:  http://www.onu.edu/files/wth_it4nr.pdf0_.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

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sray454
New Member

State taxes...i live in Indiana and work in Ohio

Thanks for the Information!!
luvarnie
Returning Member

State taxes...i live in Indiana and work in Ohio

So, I live in Ohio and I work full time in Indiana.  My W-2 says that I paid state taxes.  I'm assuming that would be to Indiana????  I'm working on my Ohio state tax return (I'm joint filing with my husband) and as of right now I owe the state of Ohio $1500!!!!!!!  I'm not sure what to do.

MayaD
Expert Alumni

State taxes...i live in Indiana and work in Ohio

Your w-2 box 15 has the state to which the state income tax was withheld. 

If it is for Indiana, you will need to file as a non-resident for a refund of the Indiana taxes.

You will also file Ohio resident return and report all you income. You will have an amount due since you didn't have any taxes withheld for Ohio.

Ohio and Indiana have a reciprocal state agreement that allows a resident of one state to request exemption from tax withholding from the other (reciprocal state).  You can ask you employer to stop withholding Indiana taxes to avoid this in the future.

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Hal_Al
Level 15

State taxes...i live in Indiana and work in Ohio

IN has a specific form (IT-40RNR) for a reciprocal state refund. Rather than paying TurboTax for IN software, you should try filing that form by hand. It looks pretty  simple. Get it here: http://www.in.gov/dor/4733.htm

 

The reciprocity agreement does not apply to local city & county  taxes (box 19 of the W-2).  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.

If you are subject to Ohio School District Income Tax (SDIT), you can not get a credit, for IN county taxes paid, on an SDIT return.

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