bcwatkins
New Member

I live in Ohio and worked in Kentucky. Do I owe Kentucky state taxes? I thought there was a reciprocal agreement but turbotax has me owing Ky taxes.

I paid state taxes on the W-2 from Kentucky.  I thought that would go to Ohio.  I filed a Ky tax return and indicates I owe almost $4000.  I filed an Ohio tax return and I am getting a refund.  I am confused since I thought I wouldn't owe Ky taxes if I lived in Ohio all year.
mccoy2583
New Member

State tax filing

I need to speak with someone about my taxes
Hal_Al
Level 15

State tax filing

This is a user to user forum. You can probably get help from this forum by asking a specific question. Start a new thread; don't add on here.
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State tax filing

I am confused about the reciprocal agreement? Why am I paying KY taxes?
Hal_Al
Level 15

State tax filing

In the personal info section, when it asks if you made money in another state, answer NO, per the reciprocal state instructions, on that page. This will prevent TurboTax from thinking you need to file an KY return.
Hal_Al
Level 15

State tax filing

Check your W-2 for whether OH or KY is in box 15. In the personal info section, of TurboTax, when it asks if you made money in another state, answer no, per the reciprocal state instructions on that screen.

Ohio has a reciprocal agreement, on wages,  with all neighboring states. No state taxes are withheld or due and you do not normally need to file a return for the other state (MI, PA, KY, WV, IN). But OH will tax you on your other state income.

If other state taxes are mistakenly withheld, you then have to file a return, for the other state, to get a refund. OH will not give you a credit. You should ask your employer to stop withholding so you don't have to file a  KY return every year.

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.

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aaward311
Returning Member

State tax filing

So everything is as it should be in the personal information but the KY non-resident tax forms still says KY taxes are owed. I'll grant you $29 isn't a huge amount of money but if we don't owe it why won't they return it?
Hal_Al
Level 15

State tax filing

KY has a special form  for reciprocal state refunds. Rather than pay the Turbotax fee for KY software (which is probably more than $29), you might want to try doing it by hand. 740-NP-R - Kentucky Income Tax Return Nonresident-Reciprocal State - <a rel="nofollow" target="_blank" href="http://revenue.ky.gov/NR/rdonlyres/CF85BAB5-7CAD-4A7C-84A0-6A57635ADD6B/0/15_42A740NPR0001_FINAL.pdf...>

Fill in version   <a rel="nofollow" target="_blank" href="http://revenue.ky.gov/NR/rdonlyres/052228DA-0FB3-473A-B0A1-D097BB7C96D8/0/15_42A740NPR0003_FINAL.pdf...>
aaward311
Returning Member

State tax filing

Thank you so much.  Got the form, filled it in, a lot easier that fooling with the KY form on TurboTax which gave me the wrong answer anyway!

State tax filing

My issue is I LIVE in KY & my W2 deducted OH taxes. Do I need to file for both KY (to Pay) & OH (to obtain Refund)?