Do I enter Ohio income/taxes withheld if I live in KY?

[TomK2023]

Yes, Kentucky and Ohio are reciprocal states.  You will need to file a KY resident tax return and an OH non-resident tax return.

Just be sure to fill out your Personal Info correctly during the program interview; i.e., that you are a resident of Kentucky, and that you work in Ohio.

Also, when completing your state tax returns, be sure to finish the non-residential return first (Ohio), and then the residential return second (Kentucky).  Doing this will insure that KY will give you credit for any tax that your employer withheld in Ohio.

In the future...

"A reciprocal agreement, also called reciprocity, is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns.

If your employer has withheld taxes for the work state instead of the resident state, you'll have to file for a refund from your work state. You'll still file your resident return that also includes that income and pay tax on it.

TurboTax handles reciprocal states and will generate the correct state(s) based on your personal information and your W-2."

"As a worker in a reciprocal state, you can fill out that state's exemption form and give it to your employer if you don't want them to withhold taxes for your work state. If you do this, make sure your employer also withholds taxes for your resident state, otherwise you may get hit with underpayment penalties come tax time."

Ohio Department of Taxation - Employee’s Statement of Residency in a Reciprocity State 

For more information, please see TurboTax FAQ: What is a state reciprocal agreement?

For more information, please see TurboTax FAQ: Which states have reciprocal agreements?

[Hal_Al]

It depends on what and why.  In general, you enter everything on your W-2 just as it appears. After that, what happens to it may vary.  So, for a more definitive answer, provide more detail.

A common example: you are a KY resident that works in Cincinnati, OH.  Your employer withheld Cincinnati city tax in box 19 of your W-2 (but no Ohio state tax in box 17).  What do yo do with that?

The reciprocity agreement, between KY and OH on state tax, does not apply to local city taxes. You are not required to file an OH 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 does allow an itemized deduction (Schedule A) for local tax paid.

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 OH return.

Do enter the box 19 amount at the W-2 screen, because it is deductible, if you itemize deductions on your federal return.