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.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
