The reciprocity agreement does not apply to
local city & county 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.
Indiana allows a deduction, up to $2000, for income
taxed by another state city. Some (but not all) IN counties also allow a credit, or
partial credit for tax paid to an OH city. Those items will come up in the IN
state interview.
