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tempz
New Member

State reciprocity confusion

I’ve read so many post with differing opinions to the point where I’ve confused myself. I work in Ohio and have all year. I moved to Kentucky in August. From what I’ve read, reciprocity only applies to full

year residents, so it would not apply to me until next year. I forgot to get my employer to update my state taxes from OH to KY until November. So do I allocate To OH from January to July then to KY from August to December? Or since I forgot to update Ohio until November, so I allocate to Ohio from January to November and to KY from November to December? Finally, if I allocate from OH from January to July, then KY from August to December, how do I get credit or account for the “extra” taxes I paid to Ohio from August to November? 

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1 Reply
LindaB1993
Expert Alumni

State reciprocity confusion

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

 

Kentucky does not allow a credit for tax paid to a reciprocal state.  

 

This situation is not uncommon when a move to another state is during the year.  Often, HR updates are delayed.  I recommend allocating the wages based on your actual residence change.  You may get a refund from Kentucky that will offset any additional tax due to Ohio.

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