Paying Double Taxes, HELP!!!! (Lexington, Louisville: credit, income, income tax)

[Money_Is_Everything]

I live in Indiana and work in Kentucky. I thought I wouldn't have to pay taxes for both states, but today in my paycheck I found out that I pay taxes for KY and IN, both. What the hell?

HELP me here......Gas price ain't the only one thing which is killing me....damn GOV

On top of that, I still haven't received my rebate check from GOV.

[cobolt]

Originally Posted by Money_Is_Everything

I live in Indiana and work in Kentucky. I thought I wouldn't have to pay taxes for both states, but today in my paycheck I found out that I pay taxes for KY and IN, both. What the hell?

HELP me here......Gas price ain't the only one thing which is killing me....damn GOV

On top of that, I still haven't received my rebate check from GOV.

Are you saying that you are paying dual individual state income tax?

[Jessica_Elliott]

If you live in Indiana and work in Louisville, you still have to pay local taxes to Jefferson County. However, you can get a credit on what you pay to Jeff. Co. when you file your Indiana taxes at the end of the year.

[Money_Is_Everything]

so, I will get the return back by the end of the year when I file the taxes?

Also, usually if I claim 1 dependant then what is average tax rate for single individual?

Thanks

[LouisvilleJake]

You can contact the HR department of your company and have them change your taxes. You will only pay the state income tax of Indiana, however you will also pay the occupational tax of Louisville, but that is a very low rate.

You need to call your HR dept to get your taxes deducted correctly.

[johnsonkk]

You have to pay the feds (who doesn't?) and a state tax. You should only be getting state taxes taken out from one state - in your case Indiana. Any taxes you already had taken out can be returned to you when you (now have to) file a Non-Resident form for Kentucky.

The local taxes are tricky. Louisville (Jeff Co) and Lexington are in the top 10 nationally for city taxes (2% or 2.5%) which isn't "low". But the good part is you can itemize each day that you actually work in Louisville (or Jeff Co). If you travel for work (the whole day) anywhere outside of Jefferson County for that day of work, the city taxes won't have to be paid. You'll still have to itemize this --to get BACK your money at the end of the year. I don't know how the city tax works if you're on vacation - I bet you still have to pay city taxes on those days.

[Jessica_Elliott]

Originally Posted by johnsonkk

But the good part is you can itemize each day that you actually work in Louisville (or Jeff Co).

I did not know that. Thanks for the tip!

[Jessica_Elliott]

Originally Posted by Money_Is_Everything

so, I will get the return back by the end of the year when I file the taxes?

Yes, though I would suggest having your taxes completed by a professional at least the first time so that they can explain exactly what you need to do in order to get the credit. Paying taxes to Jefferson County in addition to the Indiana county I live in isn't something I love doing, but I figure it's only fair since I am taking at least one job away from the people who actually live in Louisville.

[taylorlol]

who knows what percent exactlly is taken out of a paycheck, im young just got a job not working alot but ive askd so many people what the percent is in louisville ky &i get millions of different storys. Does any one know the tax taken out of each paycheck. part time job! min wageee

[johnsonkk]

Originally Posted by taylorlol

who knows what percent exactlly is taken out of a paycheck, im young just got a job not working alot but ive askd so many people what the percent is in louisville ky &i get millions of different storys. Does any one know the tax taken out of each paycheck. part time job! min wageee

At 2.2% (for those that live in Jefferson Co and 'only' 1.45% for those that work in Louisville but reside outside of Jefferson county), it works out to approx. 17 cents per hour that you work. For 20 hours of work that is about $3.20 per week. I take it you're not doing part time work at H&R Block.

http://www.louisvilleky.gov/Revenue/...rces/faq.htm#3