vpFREE2 Forums

Double State Tax?

#1

I'm looking at the Indiana State Tax form to try and get back some of a W2-G from last year. The W2-G is for $1500 and Majestic Star withheld $51. I paid Michigan tax on that amount.

In going through the tax forms, it looks like the key figure is the amount of income taxed by Indiana ( $1500) and the amount taxed by the Federal gov. For example, lets say my AGI was $50,000. $1500/$50,000 = 3%. This is the percentage of the Indiana deductions you can take. For this case, I would be entitled to a refund of about $1.53.

So, anyone outside of Indiana pays 2 state taxes?

John Zaroff
Delphi Electronics and Safety
313-996-3682 (w)
313-378-2987 ( Cell)
3133782987@vtext.com ( text page)

···

****************************************************************************************

Note: The information contained in this message may be privileged and confidential and thus protected from disclosure. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to the message and deleting it from your computer. Thank you.

****************************************************************************************

#2

As someone who prepares tax returns professionally, I usually take a credit against Michigan taxes for the taxes paid to another state---- MI 1040 line 23b. I don't always file a return for the other state because the amount of the refund does not warrant my preparation time. ----- Original Message -----

···

From: John.G.Zaroff<mailto:John.G.Zar…@…com>
  To: vpfree_Detroit@yahoogroups.com<mailto:vpfree_Detr…@…com> ; vpfree_Chicago@yahoogroups.com<mailto:vpfree_Chic…@…com>
  Sent: Thursday, June 09, 2005 4:25 PM
  Subject: [vpFREE_Detroit] Double State Tax?

  I'm looking at the Indiana State Tax form to try and get back some of a W2-G from last year. The W2-G is for $1500 and Majestic Star withheld $51. I paid Michigan tax on that amount.

  In going through the tax forms, it looks like the key figure is the amount of income taxed by Indiana ( $1500) and the amount taxed by the Federal gov. For example, lets say my AGI was $50,000. $1500/$50,000 = 3%. This is the percentage of the Indiana deductions you can take. For this case, I would be entitled to a refund of about $1.53.

  So, anyone outside of Indiana pays 2 state taxes?

  John Zaroff
  Delphi Electronics and Safety
  313-996-3682 (w)
  313-378-2987 ( Cell)
  3133782987@vtext.com<mailto:3133782…@…com> ( text page)

  ****************************************************************************************

  Note: The information contained in this message may be privileged and confidential and thus protected from disclosure. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to the message and deleting it from your computer. Thank you.

  ****************************************************************************************

  vpFREE Links: http://members.cox.net/vpfree/Links.htm
   
  Yahoo! Groups Links

[Non-text portions of this message have been removed]

#3

In Wisc, you must include the $1500 (for example) won out-of-state
in your income. But, when you get to the credits section of the tax
form, you are allowed to deduct the amount paid (up to the amount
Wisc would have taxed you) to IN for their state tax. So, there is
no double taxation. I am guessing that Michigan works the same way
and that you could/should have deducted the amount paid in IN on
your Mich tax form. And yes, IN does allow you to take a (very)
small deduction in the Proration section on Schedule A.

--- In vpFREE_Chicago@yahoogroups.com, "John.G.Zaroff"
<John.G.Zaroff@d...> wrote:

I'm looking at the Indiana State Tax form to try and get back some

of a W2-G from last year. The W2-G is for $1500 and Majestic Star
withheld $51. I paid Michigan tax on that amount.

In going through the tax forms, it looks like the key figure is

the amount of income taxed by Indiana ( $1500) and the amount taxed
by the Federal gov. For example, lets say my AGI was $50,000.
$1500/$50,000 = 3%. This is the percentage of the Indiana
deductions you can take. For this case, I would be entitled to a
refund of about $1.53.

···

So, anyone outside of Indiana pays 2 state taxes?