Work in Cincinnati and Live in KY. Do I need to file Cincinnati taxes? Have just one W2 from my employer and have KY in my W2. I already filed my taxes. What to do?

[sv1]

I just finished filing my taxes using Turbotax paid products. I filed for federal and KY. I live in KY (Florence) and work in OH (Cincinnati). I do not understand if I need to file for Cincinnati and even if this would mean to pay extra taxes. My only income is from just one employer (big corporate in Cincinnati). I do have just one W2 but none of the boxes are filed with Cincinnati taxes. What should I do?

[DanielV01 · Accepted solution]

You only will file a KY state return.  You are not required to file the local tax return.  There is a required local return for Ohio residents, but this tax return does not apply to those who live in border states to Ohio and are working in Ohio. You will only need to file a KY state return as you are not taxed in Ohio, since OH and KY have a reciprocal agreement which states you only pay state income tax where you live and not where you work.

The Cincinnati local tax will not factor on your Kentucky return.  KY localities only tax income earned inside of the locality.  Since you did not work in Florence, Florence is not taxing your income, and KY does not provide a credit for the local taxes you are paying to Ohio.

[sv1]

Hello Daniel. Thanks for the reply. Should I file taxes for the city of Cincinnati then? I have no reference in my W2 of Cincinnati city taxes (box 18 19 empty). Does it mean my employer calculate the withholding incorrectly? Or does it mean I should not file for the city taxes of Cincinnati?

[DanielV01]

First, double-check all copies of your W-2s to make sure no copy says you had Cincy tax withheld.  If you had none, you might have a filing requirement if you were inside of the Cincinnati filing district.  This website has more information:  <a rel="nofollow" target="_blank" href="https://www.cincinnati-oh.gov/finance/income-taxes/">https://www.cincinnati-oh.gov/finance/income-ta... may wish to check with your employer as well, but this is a return outside of TurboTax for a KY resident.

[sv1]

Hello Daniel. I did double check and I will need to file for Cincinnati and pay for these as were not withheld correctly. The only additional question is if I should also file and pay for Florence income taxes (I do not work in Florence. I just live there). Could you help?

[DanielV01]

I do know you do not need to file anything for Florence.  Florence (and all KY localities) will only tax you when you WORK there.  Since you are working in Cincinnati, you will not pay local tax to Florence.