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kecarlyle
New Member

Resident of VA but payed from Kentucky. Where in turbotax can i enter local tax payed?

 
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4 Replies
TomK2023
Expert Alumni

Resident of VA but payed from Kentucky. Where in turbotax can i enter local tax payed?

You will need to file a Kentucky nonresident tax return and a Virginia resident tax return.  Your income and taxes paid will be on your W2 (which you will enter into TurboTax).

 

In most cases, if you live in state that has income tax, you will get a credit on your tax return for the state you live in for part or all of the tax that you pay to the other state. 
 

Once you've determined that you need to file a nonresident state return, the first thing you want to do is make sure you've filled out the Personal Info section correctly:

  1. With your return open, select My Info in the menu.
  2. On the Personal info summary screen, scroll down to Other State Income, and select Edit.
  3. At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
  4. Select Continue to return to your Personal info summary.

After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.

 

Tip: To ensure accurate calculations, always complete the nonresident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.

 

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 (in 2024).  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.

 

Kentucky Certificate of Nonresidence

 

@kecarlyle 

 

[Edited 2/20/24 | 11:02am PST]

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kecarlyle
New Member

Resident of VA but payed from Kentucky. Where in turbotax can i enter local tax payed?

Thank you, but I see no place on the form to enter local tax nor am I asked about local tax as I am working on the Kentucky. return. Do I enter wages "earned or incurred in Kentucky ..." if i was payed by a Kentucky company but did not live there?

Thanks for the help

DawnC
Employee Tax Expert

Resident of VA but payed from Kentucky. Where in turbotax can i enter local tax payed?

If the local taxes are on your W-2, all you have to do is enter your W-2 (in the federal section), and TurboTax will transfer the info to your KY nonresident return.    The w-2 is the only place you will enter the state and local tax withholdings.   

 

When you go through the KY return, yes, enter the amount of wages that you earned while working in KY, which I am assuming would be all of your wages from that employer.     Prepare your Kentucky nonresident return before you prepare your VA return so that any credit for taxes paid to KY can be applied.   

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Hal_Al
Level 15

Resident of VA but payed from Kentucky. Where in turbotax can i enter local tax payed?

Virginia and Kentucky are reciprocal states. 

No KY state tax is withheld or due and you do not normally need to file a KY return .But VA will tax you on your KY income.

If KY state taxes are mistakenly withheld, you then have to file a KY return to get a refund. You should ask your employer to stop withholding so you don't have to file a KY return every year.

 

However the reciprocity agreement does not apply to local city/County taxes.  You can not get those refunded. Local withholding is usually shown in box 19 of your W-2.  And the name of the city or county in box 20. 

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