Indiana State Revenue Department Issues Letter of Findings on Individual Income Tax Refund

The Indiana Department of State Revenue issued a letter of findings regarding refund for income earned in another state. Taxpayer, an Indiana resident works in Kentucky. His employer withheld Kentucky local taxes from the taxable income on his W-2. Taxpayer filed a return for the 2022 tax year with the Indiana Department of Revenue Department in which he claimed a credit for the local taxes withheld from his income that were paid in Kentucky. The Department adjusted Taxpayer’s return, reducing the total local income tax withheld to exclude the taxes paid to Kentucky, and issued him a Notice of Proposed ...