School job in another state

[dnardozzi]

We live in PA, and our daughter went to school in 2023 in OH. All of her earned income was in OH. What state does she file? What about local taxes?

[Vanessa A]

PA and OH have a reciprocal agreement.  This means, that since her income was earned in OH, but she lives in PA, her income is still taxed only by PA.  So, you will file her PA resident return, just like you would any other time.  

If state taxes were withheld for OH, you would need to file a OH non-resident return claiming $0 income to get a refund of the taxes withheld.  

TurboTax does not cover PA local taxes, so you would need to file with whatever taxing agency you live in.  

[Hal_Al]

The reciprocity agreement does not apply to local city taxes. You are not required to file an Ohio 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. You can usually use the city taxes paid in OH to offset the local municipal taxes that will be due on your local PA return, if you are subject to one.

If filing an Ohio non-resident return, for a refund of state taxes, be on the alert for a special screen entry for a  reciprocal state refund. 

On the screen "Here's the income that Ohio handles differently", scroll down to Miscellaneous/Wages of full year residents of neighboring states.  Click Start or Edit.  You only have to make one simple entry, for Reciprocity Wages/Compensation earned in Ohio.