An employee resides in North Carolina and works in Ohio. Since there is no reciprocity, taxes are withheld from work in Ohio. North Carolina waives state taxes for the employee. Is this correct? Also, the employee is afraid that he will have to pay No

ANSWER

The BIDaWIZ Team's Answer:

No; since the employee is a NC resident, NC taxes were supposed to have

been withheld; not Ohio. The employee will have to file an Ohio non-resident tax return,

and claim a refund, for 100% of the Ohio taxes that were withheld. He will, in turn, also

have to file a NC return, and pay his NC tax liability. The employee needs to have NC, not Ohio,

taxes withheld, for the current tax year.