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Level 3
posted Feb 16, 2021 9:02:34 PM

Reciprocity between midwest states

Hello,

I am a remote employee living at Ohio. I want to know more about reciprocity law. I have a residence at Ohio and plan to spend most of my time of the year at Ohio. My parent are in Kentucky. I plan to visit them and stay with them for couple of days this year. Do i need to count the days which I am staying in Kentucky and pay the Kentucky taxes  for those days ?

0 3 542
3 Replies
Expert Alumni
Feb 17, 2021 6:32:00 AM

Kentucky has reciprocal agreements with Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia and Wisconsin. These agreements provide for taxpayers to be taxed by their state of residence, and not the state where income is earned.

Level 3
Feb 17, 2021 6:38:33 AM

@JohnB5677 That means if i keep my residence in Ohio and work from my parents' house for 2 weeks, I will still be paying only the ohio taxes for the complete year. Is that correct ?

Expert Alumni
Feb 17, 2021 7:17:43 AM

You are correct - working remotely out of state for a few weeks will not change your state tax situation.

 

As long as you remain a legal resident of OH, you would only have to file an OH return and pay OH tax on those earnings.

 

If you worked from KY for a longer period of time (several months?), your earnings might exceed KY's income threshold for filing a KY return.

 

From KY DOR website Do I Need to File a Return