We live in Ohio,2 miles from the Indiana state line.Both of us work in Indiana.My employer takes out Ohio state tax and school district tax we are obligated to pay.Like they should.My husband's employer doesn't take out school district tax and take's out state taxes for Indiana.Is there a penalty for them to do this or some kind of credit we can take? Since the money is going to another state and collecting interest all year.Is there someone I can report this to if so?What forms do I need to have for this.We also have to pay a county tax for Indiana which are taken out of both of our checks.
2007-03-01 01:30:49 · 4 answers · asked by mygrandparentsrthebestintheworld 3 in Business & Finance ➔ Taxes ➔ United States
You need to be aware of the tax agreement Ohio have with Indiana. The reciprocity agreement in short if says that any wages a Ohio citizen makes in Indiana is only taxable in Ohio.
Your husband will want to fill out an Indian W-4 form and say he is exempted from all Indiana taxes. This will stop all Indiana withholding from his taxes. Next he will want to see if they will be willing to withhold the proper Ohio taxes. Nothing say an Indiana company had to, but they may as a benefit to their employees.
Next you will need to fill out an Indiana Tax return form IT-1040-RNR to get a refund of all your taxes paid to Indiana. There will still be an Indian county income tax liability that both you and your husband have to pay.
You will be able to use the tax paid to the Indiana counties as a tax credit for Ohio. See Form OH-IT-1040 Schedule C Line 59 for details.
If you husband is not able to get his company to withhold Ohio taxes you have two chooses. 1. Is to change your withholding to make up for the shortage with your pay. 2. Send in estimated payments to Ohio.
2007-03-01 04:18:48 · answer #1 · answered by jks_mi 3 · 0⤊ 0⤋
You can/should reduce the Indiana state tax from your Ohio taxes. The online form below should help.
Ohio: http://tax.ohio.gov/online_services/index.stm#ifile
Or, just go to H&R Block and pay the $50 to let them worry about it.
2007-03-01 01:42:35 · answer #2 · answered by ropman1 4 · 0⤊ 0⤋
get income tax forms and instrux for both states. you will be filing in indiana as a nonresident with income in indiana. you will be filing in ohio as a resident, and will get credit against your ohio tax in some fashion for taxes you pay to other state(s). I have to do this one year with 3 states, that was especially fun...
2007-03-01 02:31:23 · answer #3 · answered by jim06744 5 · 0⤊ 0⤋
Go to www.irs.gov, individual, on the left side of the page are all of the States, follow the links to your States and you can get info on the rules.....
good luck & bless
2007-03-01 02:43:53 · answer #4 · answered by Wood Smoke ~ Free2Bme! 6 · 0⤊ 0⤋