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Tax Question... Working in two different states


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Do you have income tax in KY? Were KY taxes taken out of his pay as well as OH? Some states require you to claim all income in your resident state and then give you a credit for taxes paid to another state.

 

www.hrblock.com will answer tax questions for free.

 

In looking at the W2's for his KY job, the State Income Tax box DOES have an amount in it as well as the local income tax box. I am doing the FREE H&R Block online taxes all on my own and I feel confused still how to handle this. Any further advice?

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You can call H&R Block. Since you started your tax return online, you can finish it up at the office for a discounted price. There is also supposed to be some kind of chat or question board online.

 

I don't know how complicated your return is, but you also might check to see if their is any place that will complete your tax return for free. Most states have this available for lower incomes.

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I'm fairly confident that you would file a non-resident KY state tax return for all income earned in KY. There's a non-resident form on the KY income tax site.

 

I am thinking that is correct as well. We live in one state and file there, as full-year residents, but DH works in a different state, and we have to file there as well, as non-residents. In our case, the two states have a reciprocal agreement; we only pay income taxes to our residential state. It's possible OH and KY have the same agreement, or that there is a credit you can take somewhere or something so that you don't pay income taxes for that income in both states.

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http://revenue.ky.gov/NR/rdonlyres/B4282E1B-D5FA-4B5F-90DB-33F7952DE974/0/42a809.pdf

 

Ohio and Kentucky have a reciprocal agreement. Your husband needs to complete the form at the above link to have his employer stop withholding KY income tax. Assuming that the income tax withheld in 2010 was for KY and not OH, you will have to file a 2010 KY tax return to get a refund.

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http://revenue.ky.gov/NR/rdonlyres/B4282E1B-D5FA-4B5F-90DB-33F7952DE974/0/42a809.pdf

 

Ohio and Kentucky have a reciprocal agreement. Your husband needs to complete the form at the above link to have his employer stop withholding KY income tax. Assuming that the income tax withheld in 2010 was for KY and not OH, you will have to file a 2010 KY tax return to get a refund.

 

Yes, and then file this form, so that they don't take it out any more!

 

They may or may not be willing to take out Ohio taxes, which would be the best case scenario. Dh couldn't get his Mi employer to take out OH.

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