General Inquiries

Indiana County Taxes

  • 1.  Indiana County Taxes

    Posted 03-01-2019 14:11
    We are an Illinois contractor with a jobs in Illinois & Indiana.  We have an Indiana employee who worked in both Illinois & Indiana.  I withheld Indiana state taxes when he worked in Indiana and Illinois state taxes when he worked in Illinois.  Now comes the confusing part. Our software withheld local tax for where he was working when he was in Indiana and local tax for where he lived when he worked in Illinois.  So on his W-2 his county taxable wages is more than his state taxable wages.  Now he is saying he can't file his taxes (he is using some tax filing software) because his county taxable wages is greater than his state taxable wages.  Did our software do something wrong of could this be right?  I'm not finding anything online that tells me we did it right or wrong.  Help.

    ------------------------------
    Scott Wallace
    Otto Baum Company, Inc.
    Morton IL
    (309) 266-7114
    ------------------------------


  • 2.  RE: Indiana County Taxes

    Posted 03-02-2019 07:38
    Hi Scott,

    I think from what you have laid out it sounds right.  I think it is probably a software issue.  Without doing any research, he most llikely will end up with a credit on his local return where he resides that will give him some benefit for taxes paid to another locality on essentially the same wages.  He may need to seek a tax pro this year if the software won't handle it.​

    ------------------------------
    Andrew Rose CPA, CCIFP
    Tax Principal, Construction Industry Group Leader
    Rehmann
    Lansing MI
    (517) 316-2400
    ------------------------------