Worked in Indiana from Jan. 2006 to Aug. 26. I started a new job in Kentucky in September 2006, but still live in Indiana.
2007-03-09 07:17:44 · 6 answers · asked by dblbassoon2003 1 in Business & Finance ➔ Taxes ➔ United States
I was in the same situation a few years back. What happened to me was that my paycheck withheld taxes in Kansas (where I worked) but I actually owed taxes in Missouri (where I lived). I was able to get a refund from Kansas and had to write a check to Missouri.
As mentioned earlier you should ask a tax professional for 2007 reality.
2007-03-09 07:26:38 · answer #1 · answered by jgcii 4 · 0⤊ 0⤋
Assuming you had Kentucky withholdings, then yes, you'll have to file 2 state tax returns.
You'll file as a resident in Indiana, but that you paid $X amount in taxes to a different state on $X amount of income. Then you'll have to file some additional schedules to reduce your Indiana income amount.
Then, you'll have to file a non-resident return in Kentucky. They'll base your rate on your overall income for the year and the portion of it you earned in Kentucky. The ratio will then be used to find out how much tax you should have paid to Kentucky.
Remember, states get to charge income tax for any income earned in their state, regardless of where you live. Professional athletes have to file in each state that they play in (IL was the first to do this in the 90's when the Bulls were playing the Lakers in the NBA championship, CA quickly did the same thing, and now almost all states that have professional sports teams do it).
Probably should have a professional prepare it for you. Enjoy.
2007-03-09 16:08:33 · answer #2 · answered by sjoschko 3 · 0⤊ 1⤋
Yes you still owe tax to both states, depending on what kind of business you are in. I ran into that when I lived in South Carolina and worked in North Carolina.
Kermit
2007-03-09 15:27:15 · answer #3 · answered by Anonymous · 0⤊ 1⤋
on your w-2 that you filled out for your ky employer did you list your residence as indiana. if so your employer should have taken the amount out for your state of residence. You should ask your tax preparer she/ he will know .
2007-03-09 15:25:55 · answer #4 · answered by cassie9003 2 · 0⤊ 1⤋
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2007-03-09 15:49:49 · answer #5 · answered by David F 1 · 0⤊ 5⤋
in your home state that you file. double check with your accountant.
2007-03-09 15:21:15 · answer #6 · answered by star 4 · 0⤊ 1⤋