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June 6, 2019
Question

KY resident working in OH

  • June 6, 2019
  • 2 replies
  • 0 views
I work in Ohio but am a KY resident. When entering the total tax on my income in Ohio to receive the tax credit in KY, do I enter the local tax withheld in addition to the state tax?

2 replies

DanielV01
Employee
June 6, 2019

No, the Ohio local taxes are not a credit on the KY state return.  And, because Ohio and KY are reciprocal states, they have an agreement that when you work in one and live in the other, you are only taxed where you live.  If Ohio state taxes were withheld, you will file an Ohio nonresident reciprocal return to get these taxes returned to you.  However, Kentucky is taxing all of your income.  Because of the reciprocal agreement, you will not need the credit for tax paid in Ohio because you will get all of that back.  Local taxes are not a part of the reciprocal agreement, and KY localities only tax you when you work in that locality, so there is no credit to claim for your Ohio local taxes.

You may fill out a form with your employer so that they withhold KY and not OH tax.  Please see the following FAQ for more information on this:  https://ttlc.intuit.com/replies/4776822

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June 6, 2019
Thanks for your reply. So when filing my State taxes on TurboTax, I have filed as a non-resident of Ohio AND as a resident of Kentucky. Is that correct? I have not filled out any exemption form and I assume it is too late to do so for this tax filing year?
April 13, 2023

I am a KY resident working in Ohio, KY and Indiana. My employee has local taxes paid per my W2 for an Ohio locality. How do I get that back if I am paying taxes in KY?