Questions & Answers

What is the credit for local taxes paid outside of Indiana?

If you figured county tax on your Indiana return and had to pay a local income tax outside Indiana, you may be able to take a credit. This credit applies only if the tax you paid outside Indiana was to another city, county, town, or other local governmental entity, and they did not refund the tax, or give you a credit for Indiana county tax.

The credit can be used to reduce your county tax liability.

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