Ohio has reciprocity agreements with Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. Under these agreements, the income earned in these states for Wages and Salaries is taxable to Ohio and should be included on the Ohio return.
If the taxpayers employer withheld income tax for the nonresident state, a nonresident return needs to be filed to claim a refund for the taxes paid. The taxpayer cannot claim a refund on the resident return for the taxes paid to another state.
Ohio Resident Return:
Complete the information required.
If the other state is Indiana;
- Add or Edit Indiana Nonresident Return
- County Information - Complete the questions indicting taxpayer lived in Michigan and the county where you worked.
- Miscellaneous Forms
- Indiana Reciprocal return - (IT-40RNR) and answer the questions.
Please note that the taxpayer may still be subject to county tax on the income earned while a nonresident. According to Indiana Informational Bulletin #33, 'Indiana reciprocity agreements do not affect withholding requirements concerning the Indiana County Adjusted Gross Income Tax (CAGIT), County Economic Development Income Tax (CEDIT), or County Option Income Tax (COIT).'
To claim exempt from Indiana withholdings on future returns, complete form WH-47 and file it with the taxpayers employer.
If the other state is Kentucky;
- Add or Edit Kentucky Nonresident Return
- Were you a Full-year Resident of aa Reciprocal State? - Answer Yes and Select Michigan from the list of states
- Residency Information - Complete the questions indicting the taxpayer is a resident of a reciprocal state.
To claim exempt from Kentucky withholdings in the future, file form 42A809 with the taxpayers employer.
If the other state is Michigan;
- Add or Edit Nonresident Michigan Return
- Nonresident & Part Year Income Allocation
- Income Allocation
- Wages and Salaries
- Adjustments to State Wages - Enter the wages for Michigan as a negative.
To claim exempt from future withholdings, file form MI-W4 with the taxpayers employer.
If the other state is Pennsylvania;
- Add or Edit Nonresident Pennsylvania return
- Pennsylvania Taxable Income
- Gross Pennsylvania Compensation
- Calculated Wages
- Complete Schedule NHR
Pennsylvania requires proof that taxes were paid to the other state. The return must be printed and mailed along with a copy of the Indiana state return, the W-2(s) with the Pennsylvania income and a statement explaining you are a resident of a reciprocal state.
To claim exempt from future PA withholdings, file form REV-419 with the employer.
If the other state is West Virginia;
- Add Nonresident West Virginia Return
- Are you a full -year resident of a Reciprocal State with West Virginia Income Only from wages, tips and salary? - Answer Yes and Select Ohio from list of states
To claim exempt from future withholdings, complete form WV/IT-104 and file it with the taxpayers employer.
Additional Information:
Ohio State Tax Information
ProWeb: Which States does Indiana have a Reciprocal Agreement with?
ProWeb: Which States does Michigan have a Reciprocal Agreement with?