I am filing my taxes and I live in Ohio but worked in Kentucky. I only earned income in Kentucky. There is a reciprocity agreement between kentucky and ohio. I filed the kentucky return as a non-resident. By the end of the return it is saying I owe over $1000 on my kentucky return which is confusing to me because I didn't think that I'd owe any money to a state I only work in, let alone over $1000. How do I go about making sure I'm doing things correctly on these state returns to make sure I don't over pay ?
are you filing Kentucky as a non-resident
in the state section of your w-2 what is showing
you shou,d ask your employer what forms need to be filed with it to stop KY withholding and start OH withholding.
Yes, I'm filing kentucky as a non-resident. The state section shows OH . I'm so confused by it.
Be sure to file the non-resident KY state return first, then your resident state.
KY exemption form to give to your employer
Is it normal to owe to the non-resident state until my home states return is filed ?
Why are you filing a return for Kentucky at all?
Did your employer withhold Kentucky state tax? If so, you might file a Kentucky return to get that tax refunded, but if your employer only withheld Ohio State Tax (as he should have) there should be no need for you to be filing a non-resident Kentucky return unless there is other income for Kentucky, such as Capital Gains or rental income.
When I put all my info into TurboTax they said I had to file a nonresident return for kentucky. I assumed its since that's where I'm employed. My w-2 shows OH as the state in the with holding location though. I'm 30 years old and this is the first time I've ever had so much trouble filing my taxes !
If you don't have Kentucky withholding in the state section of your W-2, you don't need to file a Kentucky nonresident return. Make sure that you didn't tell TurboTax that you made money in another state. To help ensure that you create the correct state tax return, review your personal information that you've entered in the Personal Info section of TurboTax, delete the state returns, and start over.
To delete your KY and Ohio tax returns so you can start over, follow the steps below:
Refer to the TurboTax article How do I delete my state return in TurboTax Online?
To review your answers in the Personal Info section:
After you complete your federal tax return and you move to the State Taxes sections, only your resident Ohio state returns will be listed.
Ah! So that's where I messed up .... since OH is withholding on my w-2 and my employer is in kentucky I do NOT check the box that says I earned money in another state. Correct? That would make sense then. I'll give that a go. Thank you so much !
Correct, the program should have said something like "Kentucky and Ohio have a reciprocal agreement, you don't need to file for Kentucky." BUT you could have other income besides wages, like rental income or capital gain attributed to Kentucky. Only then would you select "I earned money in another state" (since that type of income is not covered under the reciprocal agreement).