Some taxpayers in our area may be in for a surprise when they file their Indiana returns.
H&R Block Senior Tax Advisor Michelle Bachtel says that could be the case if you moved mid-year, as the state calculates county taxes based on where you live on Jan. 1. For instance, someone who moved from Pulaski to Starke County and changed their withholding may end up owing state taxes.
“That’s the one rare situation where I would say do not submit a corrected W-4. You just want to let it go until the end of the year,” Bachtel said.
Additionally, Starke County changed its tax rate mid-year last year. Bachtel says she’s run into a lot of situations where payroll processors didn’t update their systems. As a result, some residents did not have quite enough taxes withheld and may end up owing the state a little money.
Both federal and state income taxes are due April 15. Bachtel says both the IRS and Indiana Department of Revenue will work with you if you can’t afford to pay what you owe. You can file an extension in order to avoid failure to file penalties and make payments on an installment plan.
More Indiana-specific information is available online at http://www.in.gov/dor/4703.htm