Local tax paid in Ohio for Indiana resident

Forum|Forum|1 year ago
September 10, 2024
1 reply
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My son is an Indiana resident who completed a Co-op in Ohio through the University of Cincinnati. I imported his W2 on Turbo Tax, and the amount that was used on his Indiana schedule 5 was the sum of the taxes paid in the county where we live plus the amount he paid in the county in Ohio where he worked. Now he got a bill for $291.95. Has anyone else run into this problem, and why wasn't the imported information accurate?

Hal_Al

Employee

The reciprocity agreement between OH & IN on state income tax does not apply to local city taxes. You are not required to file an OH local city return, but you are also not entitled to a refund of the city withholding (box19 on your W-2), unless there was an error in the amount.

Most IN counties (but not the state) allow a credit, or partial credit for tax paid to an OH city. That will come up in the IN state interview.

jkummerAuthor

I went back to his TurboTax file to see if I could submit an amended return, but in order to put any information in TT for the local amount that was withheld, it said I had to file an Ohio return first as far as I could tell... If there is another way to do this, I would love to know!

Hal_Al

Employee

In the personal info section, when it asks if you made money in another state, answer NO, per the reciprocal state instructions, on that page. This will prevent TurboTax from thinking you need to file an OH return.