Confusion on KY local income tax

[K2013]

Hi, I work from home in Kentucky and my job is located in Ohio. The two states have tax reciprocity. I notice there wasn’t any local income tax taken out of my paycheck, shouldn’t there be? My husband works in Kentucky and it was taken out of his paycheck. Also, do I need to report local income tax for Kentucky on my taxes? If so how do I do this as I don’t see anything on the Kentucky website and didn’t receive anything in the mail.

[ThomasM125]

Depending on the locality that you live in, there may be local tax that you are responsible for. Since you work in Ohio, the local tax may not be deducted from your paycheck, as companies in Ohio may not be required to do this. TurboTax will address this issue when you go through your state tax return entries. Even though you didn't have local taxes withheld from your paycheck, you will pay them in with your income tax return prepared in TurboTax if you are responsible for them.

[K2013]

So I don’t need to pay local income tax to Kentucky? I guess I thought The local income tax would go to Kentucky since that’s where I live and pay taxes to Kentucky and not ohio because of the tax reciprocity.

[ThomasM125]

@K2013 No, you may need to pay local tax in Kentucky, but your employer may not deduct it from your pay. You calculate the local tax tax on your personal tax return. If your employer took it out of your pay, then you don't have to pay it with your tax return. Otherwise, you will pay it when you file your personal tax return.