Legal State Residence Taxes

[cchuck38]

What is the name of your state (only U.S. law)? IN
I live in IN but stay at friends house most of time in KY. I work in KY but
checks come from VA (location of Parent Co.). Drivers Lic. Branch said in
order to obtain KY Lic. I have to have something in my name with KY address
on it. This I cannot do. I can go to the Postal Office and do a change of
address and they would accept this, however, my auto insurance is in parent
name & mind, but for the location of my home in IN. I pay IN state taxes not
KY. I do not want to break any laws. Is it breaking the law by maintaining
my IN residences and paying IN state taxes? I know I have to change
residence if I continue to stay & work in KY (if new contract is renewed at
work). But should I go back and correct my state income tax returns
(employer took out IN taxes not KY)? Did I break any KY laws by not paying
state taxes? If I resubmit state tax returns, will IN refund me the taxes I
payed to them? Will KY go back and require me to pay them back taxes for
two years (this is how long I have been staying with friend)? The most
important question is "What law am I breaking if I do not change by residence"?What is the name of your state (only U.S. law)?

 

[pattytx]

I can only address the withholding. Indiana and Kentucky have a reciprocal agreement for state income tax withholding (not county) wherein the worked-in state forgoes its authority to require the employer to withhold and defers to the lived-in state for withholding.

Having said this, sounds like you need a good tax preparer to flesh out your situation. Most of them will have experience in the regulations for working in one state and living in the other, especially if they are located near the state border.

 

[cchuck38]

Please advise if I am in the wrong Legal Forum.
Thanks for your answer. I did not make myself very clear,
and I am sorry. I am working as a contractor for a company
that is located in NC. Therefore, my W2 shows my employer
from NC and not KY. My employer does take out IN state
taxes because I still have IN as my primary residence, however
they do not take out county taxes. Since I have no property,
utilities, nothing showing I live in KY, do I have to pay KY state
taxes, or can I continue to pay IN state and county taxes?
Will the state of KY come back on me for the last two years
and say that since I was living at a home located in KY that I
must pay them KY taxes. Called Lic. Bur. again and they say you
have 30 days to switch drivers lic. once you move, but I would have
to switch mailing address to do that (which I would perfer not to).
I look at my address now as temporary but am afraid the state
may not think so. Is there a web site I can go to and find out
residence rules and regulations? Can someone lead me in the right
direction? Thanks in advance.

 

[LdiJ]

Please advise if I am in the wrong Legal Forum.
Thanks for your answer. I did not make myself very clear,
and I am sorry. I am working as a contractor for a company
that is located in NC. Therefore, my W2 shows my employer
from NC and not KY. My employer does take out IN state
taxes because I still have IN as my primary residence, however
they do not take out county taxes. Since I have no property,
utilities, nothing showing I live in KY, do I have to pay KY state
taxes, or can I continue to pay IN state and county taxes?
Will the state of KY come back on me for the last two years
and say that since I was living at a home located in KY that I
must pay them KY taxes. Called Lic. Bur. again and they say you
have 30 days to switch drivers lic. once you move, but I would have
to switch mailing address to do that (which I would perfer not to).
I look at my address now as temporary but am afraid the state
may not think so. Is there a web site I can go to and find out
residence rules and regulations? Can someone lead me in the right
direction? Thanks in advance.

At this point, both IN and KY are going to be looking for a tax return from you.

See a tax professional.