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    mrbabu's Avatar
    mrbabu Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 19, 2007, 12:07 PM
    Which State Tax to Pay ?
    Dear Tax Consultants,

    I work on a L1A Visa for an Indian Company which has its Head Quarters in USA.
    My Company is located in Illinois and Every Month my Pay check is given by
    This Office. And I am in their payroll system.

    But, Due to need of my Job Responsibility, I stay in Ohio and Work out of There.
    I have a Rental Lease and Drivers License in Ohio.

    Now, Which state tax do I have to pay ? Ohio or Illinois ? I tried reading the tax rules
    And other publications, but I am not clear.

    Although I stay in Ohio, I do not make money here!. So, It looks like I do not need to pay here. But, Since I have a Rental Lease, I am Ohio resident, which makes me think I should
    Pay the Oh Tax..

    My company has deducted my state tax for IL, and they seem to say this is
    Correct.

    Can you please help here...

    Thanks
    MRB
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 19, 2007, 12:28 PM
    MRB:

    Your company is worng. If you work and live in Ohio, then you pay Ohio state income taxes.

    The fact that your company is based in Illinois is irrelevant, because, if you are not physically living or wiorking in Illinois, then you are NOT liable for Illinois state income tax.

    Contact your company and instruct them to begin withholding Ohio state taxes from your salary for 2007 and to refund any 2007 Illinois state taxes withheld.

    You will have to file an Illinois state tax return to get the taxes withheld in 2006 back in full. You will also need to file a 2006 Ohio state income tax.

    Attach a copy of the Ohio state tax return to the Illinois tax return to show the Illinois tax authorities that you are NOT an Illinois resident and that you are paying taxes to Ohio on your salary.

    A cover letter to the Ohio state tax authorities explaining the problem should exempt you from any penalties and interest they may apply for under-withholding your Ohio state income taxes.

    If you need help filing, contact me at [email protected].
    amparker's Avatar
    amparker Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Feb 12, 2010, 08:52 AM
    My husband and I live in Franklin, Tennessee. He works in Bowling Green, Kentucky, (commutes daily). Does he pay Kentucky State taxes and or does he pay the city of Bowling Green taxes?
    Thank you,
    Ann P.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Mar 9, 2010, 03:36 PM
    Ann:

    For sure, he pays taxes to Kentucky.

    Not sure about Bowling Green taxes; best you call the city and ASK!
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