Question

Other state income

Forum|Forum|3 years ago
January 12, 2023
1 reply
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I live in Ohio and for part of the year my job was located within Ohio. It was later relocated to Kentucky. I am unsure if I need to file for both states or only Ohio.

DaveF1006

Yes, you may need to file in both states if there is Kentucky state taxes taken out of your paycheck. if so, you should file a Kentucky State tax return as a non-resident to receive a refund for the taxes withheld or receive a credit on your Ohio resident return for the taxes paid in Kentucky. If you have no taxes withheld for the state of Kentucky, then you are not obligated to file a Kentucky non-resident return.

As a FYI, Kentucky and Ohio have reciprocal state agreements where there will not be taxes withheld in those states for non-residents. If this is the case, you will need to fill out a form 42A809 and submit to your employer. Here is a link for that form.

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Hal_Al

Employee

Q. I am unsure if I need to file for both states or only Ohio?

A. Only Ohio, because KY & OH are "reciprocal states". You will only need to file KY, to get a refund, if your employer mistakenly withholds KY tax*.

@DaveF1006 said: "you should file a Kentucky State tax return as a non-resident to receive a refund for the taxes withheld or receive a credit on your Ohio resident return for the taxes paid in Kentucky".

Because of the reciprocity agreement, Ohio will NOT give you a credit for tax paid to KY. The only way to get KY withholding back is to file for a refund from KY. KY has a specific form (740 NP-R ) for a reciprocal state refund. Rather than paying TurboTax for KY software, you should try filing that form by hand. It looks pretty simple.

https://revenue.ky.gov/Forms/740-NP-R.020521.pdf

As DaveF1006 said, you want to file the form ( Form 42A809 ) to ask your employer not to withhold KY tax.

*However the reciprocity agreement does not apply to local city or county taxes. You can not get those refunded. But if you live in an Ohio city with a tax, they may give you a credit or partial credit. Many do. You need to check with your city.

If you are subject to Ohio School District Income Tax (SDIT), you can not get a credit, for KY local taxes withheld, on an SDIT return.