Ohio Non Resident Credit / Refund

[Mark257]

KY Resident who's new employer in Ohio withheld OH and reported OH income why are we not able to get a 100% refund to pay the KY short fall ? How do we file ?

[MaryK4]

A resident of Kentucky who had Ohio state income tax erroneously withheld from their wages during the preceding calendar year can file an Ohio IT 1040 to request their refund.  You will file as a nonresident  with zero (0) Ohio income.  Ohio will refund you the withholding.

You will have to report and pay the income in your resident state Kentucky.  If you have not already done so, ask you employer for an  Ohio IT 4, Employee’s Withholding Exemption Certificate. Specifically, section III. and they can withholding the Kentucky taxes for 2021.

[Hal_Al]

Q.  Why are we not able to get a 100% refund to pay the KY short fall ?

A. There is no procedure available for doing that.  You have to file for an OH refund and you have to file to pay KY tax.  The only way to use the OH refund to pay is file OH early, get the money, then file and pay KY.