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March 22, 2020
Question

I work in KY and live in Indiana. I get taxed by the local county and city. Do i claim these in the "Credit for Non-Indiana Taxes" category?

  • March 22, 2020
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1 reply

DMarkM1
March 22, 2020

You mention you get taxed by local county and city.  Which state? 

 

If KY, then IN and KY have a reciprocity agreement for the state taxes, but it does not include any lower taxes.  Therefore you would include the KY city and county taxes for credit on your IN return.  Here is a link with information from IN.  

 

If you mean IN, then no.  These are IN taxes. 

 

 

edited 12:05 pm EDT 3/22/2020

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fireemt77Author
March 26, 2020

Myself and my wife were taxed by the local county and city that we work in (KY) while living in Indiana. 

AmyC
Employee
March 26, 2020

No, states only give credit at the same level.  You are looking at different levels of taxes, federal, state, county and city. 

The US return gives credit for taxes paid to foreign countries.

The state gives credit for other states.

The city and county tax you for working there and using their resources with no credit to a state available.

 

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