Tax Consequences For Working In A Different State

In about two and a half years I am considering moving to KY. However, I will probably end up working just across the river in OH since the jobs in OH pay more. What are some of the tax consequences for working in a different state than you live? The cost of living is lower in KY.

Thanks.

Angio333,

A lot can happen in 2.5 years, but it is good to plan and look ahead.

You will have Ohio income tax withheld from your income earned in Ohio. You will pay Ohio taxes. Kentucky will ask you to pay Kentucky tax but Kentucky will give you credit for the tax you paid to Ohio.

Here is a link that will help you determine all of the taxes in both KY and OH and how you may be affected:
http://www.retirementliving.com/RLtaxes.html

Perhaps Jim_Ohio can add more.