Double taxed when you live and work in two different counties, but the same state?

Question

I live in a very rural area with only one "city" (which is a pretty small town too) and I have a job in a different county (I know many people frown upon that, but I tried EVERYTHING and getting a job in my county was simply impossible for me). Both counties are in Indiana (I live in Harrison County and work in Floyd County) so the state tax is the same, but do I owe taxes for both counties? If so, would it add up to be about the same amount it would be if I lived in one county or will I owe double in taxes?

Update:

Also, if I owe taxes for both counties, will I be able to get into recreational parks for the price of a county resident or will I still owe the extra money?

Shay · Accepted Answer

I also live in Indiana.  I have worked in Allen county while living in Huntington county.

You only owe taxes for the county that you live in.  Your employer should be withholding your taxes based on the county you live in - not the county you work in.

If there has been an error, then it would be corrected when  you file your tax return each year.  (basically, any money that was taken for the county you work in would be applied to taxes owed for the county you live in.  Any over payment would be refunded.)

You are not a county resident in the county you work in.  You would still owe non-resident fees for any recreational parks of that county.  Even if taxes are currently being withheld from your check - those will be refunded to you on a tax return which means you are not paying county taxes for the county you are not a resident of.

L · Answer

Your Withholding Taxes are for any work you do WITHIN your state.

Christin K · Answer

If you've been double taxed you're entitled to a refund. Call the tax authority where you AREN'T a resident and tell them what happened and they will send you or direct you to what forms you have to fill out.

And a recreational pass has nothing to do with where you pay your taxes. It has to do with your actual residence.

Slickterp · Answer

That all depends on how they assess those taxes, if they are income taxes.

Pearl L · Answer

i would ask the irs this question

Max Hoopla · Answer

You will get a credit for payment to the county where you work.

Judy · Answer

one of them likely gives you credit for the  tax paid to the other.

Brian Mcilwee · Answer

If Indiana has tax at the county level (most places except Maryland and Florida which are backward do not have that) then your employer will withhold taxes at the correct rate for county level.

Anonymous · Answer

"do I owe taxes for both counties"   What kind of tax are you referring to?    As you said, income tax goes by state, not county.

If you buy gas, you'll pay gas tax in the county in which you bought the gas.   If you buy some new dishes, you'll pay sales tax in the county in which you bought the dishes.

As far as pricing for parks goes, yes, the daily rate is different for county residents vs. non-residents.    You can buy a Harrison park Superpass for $39 and it doesn't matter which county you live in.

Double taxed when you live and work in two different counties, but the same state?

9 Answers