Ohio has a reciprocal agreement, on wages, with all
neighboring states. No Ohio
state taxes are withheld or due and you do not need to file an OH return. But
your home state will tax you on your Ohio
income.
If Ohio
taxes are mistakenly withheld, you have to file an Ohio return to get a refund. You should ask
your employer to stop withholding so you don't have to file an Ohio return every year.
However the reciprocity
agreement does not apply to local city taxes. You are not required to file a
local city return, but you are also not entitled to a refund of the city
withholding (box19 on your W-2), unless there was an error in the amount. If
you are subject to a KY county or city tax, you should check to see if the KY
city will give you a credit for the OH city tax withheld. KY will not give you a credit on the KY state return. KY does allow an itemized deduction (Schedule A) for local tax paid.
