OTR truck driver - home state Texas - work state Indiana

[lyndaj0331]

Does anyone know anything about Indiana nonresident returns?  I have an over-the-road truck driver who lives in Texas.  The company he works for is in Indiana.  He received a W2 showing Indiana income and Dubois County income.  It appears that he does not have to pay state tax, but is responsible for county tax according to his employer and what others are telling him.  There was 0 tax withheld for state but there was an amount withheld for county tax.  I cannot figure out how to make this happen other than by removing the "income taxed by Indiana" from Schedule A.  But, when i do that, he is no longer showing as being liable for the county tax.  If i remove the amount from his W2 box 16 but leave the amount in 18, the same thing happens. Was his W2 prepared incorrectly?  Any help would be greatly appreciated.

Thank you.

[dkh]

I do not agree with the conclusion that your client does not have to pay Indiana state tax.  I suggest you research that further.   

To get the county tax to flow to the Indiana return.... enter the W2 as received  - do not remove any amounts as you said you have tried.    Be sure to enter the Associated State  next to box 19 on the W2 worksheet.   You also need to complete the Non resident section of the Federal Information Worksheet it is Part XI in the Professional Proseries - not sure about Basic.    

[lyndaj0331]

 I agree.  I have found nothing to indicate that he does not have to pay Indiana state tax.  But, that is what the owner of the company is telling him.  I don't know what to do for him other than to have him mail in an amended without the state income and let them respond to him that it is incorrect. 

Thank you for the response.

[dkh]

Does the owner of the company he works for prepare taxes for a living ?   Prepare the return as you know is correct - with Indiana state tax calculated.   Why an amended return?