living in one state and working in another

[dave]

I was wondering how the taxes work. If you live in one state and work in another do you pay both state taxes or have to file in both states. I have always lived in KY and worked here. But if i go north and live in IN how will that effect me on taxes and filling at the end of the year?

[trinitus]

You could get screwed if you own property in KY. As for working in one state and living in another, well each person makes this decision every-time they come to work in KY.

Now, from what my friends have told me about KY/IN thing is this, They get hit with the same Jefferson County Employee Tax you get hit with. Ford does take out for those who live across the river, Indiana state tax and any county tax that the county requires. The Jefferson County Employee Tax is credited to them at tax time. Or they get it back however you want to look at it. Still not enough reason for me to move there.

For those who go to CAP, I would wonder myself on how the tax will work there. If you own a house in KY, you are still liable for the taxes on it. They might be able to take KY. taxes out on you if you ask since I believe most would want to come back after it is all over and done with.

Worst case scenario, I think you could go tax exempt on state tax but it will cost you at tax time. I would ask the person who does your taxes each year as to what would be your best option.

[lucero]

Hoosier Hater! LOL

[ktpsparky]

First, I believe income tax in Indiana is flat at 3.4% while the state income tax in KY is progressive up to 6.5%.

It depends on the county you live in. I think most counties in Indiana now each have their own county income tax.

Harrison County has a reciprocal agreement so that the Jeff Co Employment Tax is credited for the county tax due. It isn't a $-for-$ credit, but a formula. Generally, you pay more in Jeff Co Emp Tax than you would in county tax.

Both Clark and Floyd counties also have an income tax as well, but it is my understanding that they do not have any reciprocal agreement, so you pay Jeff Co Employment Tax and your resident county tax! Ouch.

I also believe that I've had this conversation with a fellow electrician who relocated from Indy. His family is still in Indy, and after some mistakes, he now claims residency in Indy. I think he only pays the Indiana Income Tax and his resident county tax.

I personally have lived in Harrison County, IN for my whole time of Jefferson County employment, so I can only try to understand other situational tax ramifications, but I do believe I live in greener tax pastures...afterall, part of my tax burden is funded by many Jefferson County gambling habits! ;D

[trinitus]

Apr 6, 2010 21:22:48 GMT -5 lucero said:

Hoosier Hater! LOL

Hoosier Hater, I have you know some of my best enemies err friends are from Indiana.

Just kidding, I know they tax differently there and it is up to the people who live in those counties that are hit with that double tax all year to figure out. I have two friends who live in Clark County over there, and one says he pays the county tax each payday and the other don't. At the end of the year the who pays gets a bigger State refund check but both get the tax credit thing for the Jefferson County Employee tax.

[lucero]

Yeah, they do make it as confusing as hell, but they sure dont spend that tax money on road repairs.

[dave]

Thanks for everyone replies.

[keithf]

Apr 6, 2010 15:10:49 GMT -5 dave said:

I was wondering how the taxes work. If you live in one state and work in another do you pay both state taxes or have to file in both states. I have always lived in KY and worked here. But if i go north and live in IN how will that effect me on taxes and filling at the end of the year?

dave, i've been a hoosier since birth. worked in louisville (ups and ford among others) for 20 years. i only pay state taxes for indiana. i have paid some louisville city taxes, but those are deductible on my indiana state taxes. as far as going to chicago, taxes are much lower in indiana compared to chicago. and rent is deductible in indiana as well.

[dave]

Thanks for the info Keith. I am heading up north this weekend to look around, Trying get a feel for the northern Indiana area. Im not an 100% im going but want to explore the option.

Not sure if i know you from the plant, I worked on the door line. But if we go to Chicago hope to see you there.

[lucero]

Dave, which job on door line?

[dave]

I did the right door panel job on b-crew.

[keithf]

Apr 9, 2010 18:36:55 GMT -5 dave said:

Thanks for the info Keith. I am heading up north this weekend to look around, Trying get a feel for the northern Indiana area. Im not an 100% im going but want to explore the option.

Not sure if i know you from the plant, I worked on the door line. But if we go to Chicago hope to see you there.

never worked on the door line. worked on frame line, and tire room. i'm sure we've seen each other. scope us out some apartments.

[lucero]

My bad Dave, shoulda known. Pierce