My Louisville Travel Journal

[Naomi Manischewitz]

Originally Posted by sellinggreaterlouisville

Namomi,

Seems like I'm pretty good with the bar stuff. The he was trying to tell you about was The Outlook Inn. One of the best bloody marys in the city. A personal favorite "last stop" bar for me. Legally they can serve up until 4am. Most of the other bars in town will do last call at 3:30. You can still get a drink at the Outlook Inn at 3:55!!

ohhh. i am confused a bit with some words that people say. it sounded like outliner, outlaw, or outlier.

what kind of people go there? he said its his favorite place.

[erickp]

Originally Posted by Naomi Manischewitz

QUESTION! if i live in ky but work in indiana, do i pay state income tax for indiana or ky?????

This is the way it was a few years ago, unless it has changed...

Kentucky and Indiana have a reciprocal agreement. You pay state taxes only in your state of residence. If you work in the other state, and your employer witholds state taxes, you will get them all back at the end of the year. But of course, you will owe state income tax where you live.

Again, take that with a grain of salt, because it may have changed.

[Naomi Manischewitz]

Originally Posted by erickp

This is the way it was a few years ago, unless it has changed...

Kentucky and Indiana have a reciprocal agreement. You pay state taxes only in your state of residence. If you work in the other state, and your employer witholds state taxes, you will get them all back at the end of the year. But of course, you will owe state income tax where you live.

Again, take that with a grain of salt, because it may have changed.

how can i find out what it is now??

[erickp]

Originally Posted by Naomi Manischewitz

how can i find out what it is now??

I asked our HR people today; they referred me to this:

103 KAR 17:140. Individual income tax - reciprocity - nonresidents.

Section 3 (2) Indiana. Residents of Indiana shall be exempt from Kentucky income tax on wages, salaries, and commissions.

You would likely owe Kentucky tax on other types of income earned in Kentucky, such as investments, income from rental property, etc. If you're in this situation, you'll probably need to check with a tax professional.

And you would pay Indiana income tax on your income from Kentucky when you file your yearly return.

[Naomi Manischewitz]

Originally Posted by erickp

I asked our HR people today; they referred me to this:

103 KAR 17:140. Individual income tax - reciprocity - nonresidents.

Section 3 (2) Indiana. Residents of Indiana shall be exempt from Kentucky income tax on wages, salaries, and commissions.

You would likely owe Kentucky tax on other types of income earned in Kentucky, such as investments, income from rental property, etc. If you're in this situation, you'll probably need to check with a tax professional.

And you would pay Indiana income tax on your income from Kentucky when you file your yearly return.

thanks but what about in the situation that you reside in kentucky BUT work in indiana?

[missymomof3]

Originally Posted by Naomi Manischewitz

thanks but what about in the situation that you reside in kentucky BUT work in indiana?

My Mom said that she pays both but gets back her Kentucky taxes and pays Indiana.

[erickp]

Sorry, I answered your question in reverse

It 's also outline in the Indiana code:

"45 IAC 3.1-1-76 Reciprocity

Sec. 76. Reciprocal Agreements States. ...These states include:
Illinois Michigan Pennsylvania Kentucky Ohio Wisconsin...

... a resident of another reciprocal agreement state who works in Indiana and has Indiana withholding tax deducted from his wages, salaries or commissions may claim a refund of the amount so withheld. To claim a refund, an individual must file an Indiana Nonresident tax return indicating residency in a reciprocal state and attaching a wage and tax statement (Form W-2) showing that Indiana taxes were withheld...."

It works the same way I described above, only in reverse. Again here, you would pay Kentucky state tax on your total yearly income when you file your Kentucky return.

Hope this answers your question.

[Naomi Manischewitz]

thanks for the tips!