--- title: "Kentucky Tax Reciprocity: Form 42A809 Explained | MCC" description: "Kentucky income tax reciprocity with IL, IN, MI, OH, VA, WV and WI: who files Form 42A809, the conditions and where commuters file, from official pages." url: "https://mcc-solutionsnj.com/bookkeeping/state-tax-reciprocity-kentucky" --- Reciprocity · Kentucky # Kentucky income tax reciprocity Who can skip Kentucky withholding, the certificate the employer needs, and what Kentucky Department of Revenue says about commuters and remote days. [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) **Short answer.** Kentucky has reciprocal agreements with Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia and Wisconsin. A resident of one of them who works here gives the employer Form 42A809 and pays income tax on covered wages at home. ## Kentucky at a glance Income tax on wages Yes Agreements named Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia and Wisconsin What's covered Illinois and West Virginia: wages and salaries. Indiana: wages, salaries and commissions. Michigan and Wisconsin: income from personal services. Ohio: wages and salaries. Virginia: salaries and wages, commuting daily. Employee form Form 42A809, Certificate of Nonresidence Nonresidents Withheld from unless an agreement or exemption applies Resident credit Stated Convenience rule Not stated on the pages we read Agency Kentucky Department of Revenue ## Kentucky's agreement partners | Partner | Other side | Their form | Conditions | Check | | --- | --- | --- | --- | --- | | [Illinois](/bookkeeping/state-tax-reciprocity-illinois) | Names this state too | IL-W-5-NR | None beyond the general ones | [Live there, work here](/bookkeeping/live-in-one-state-work-in-another-checker?home=il&work=ky) | | [Indiana](/bookkeeping/state-tax-reciprocity-indiana) | Names this state too | WH-47 | None beyond the general ones | [Live there, work here](/bookkeeping/live-in-one-state-work-in-another-checker?home=in&work=ky) | | [Michigan](/bookkeeping/state-tax-reciprocity-michigan) | Names this state too | MI-W4 | None beyond the general ones | [Live there, work here](/bookkeeping/live-in-one-state-work-in-another-checker?home=mi&work=ky) | | [Ohio](/bookkeeping/state-tax-reciprocity-ohio) | Names this state too | IT 4NR | Not for an Ohio resident who is a 20 percent or greater direct or indirect equity investor in an S corporation, for wages from that S corporation. | [Live there, work here](/bookkeeping/live-in-one-state-work-in-another-checker?home=oh&work=ky) | | [Virginia](/bookkeeping/state-tax-reciprocity-virginia) | Names this state too | VA-4 | Virginia residents must commute daily to the job in Kentucky. | [Live there, work here](/bookkeeping/live-in-one-state-work-in-another-checker?home=va&work=ky) | | [West Virginia](/bookkeeping/state-tax-reciprocity-west-virginia) | Names this state too | WV/IT-104NR | None beyond the general ones | [Live there, work here](/bookkeeping/live-in-one-state-work-in-another-checker?home=wv&work=ky) | | [Wisconsin](/bookkeeping/state-tax-reciprocity-wisconsin) | Names this state too | W-220 | None beyond the general ones | [Live there, work here](/bookkeeping/live-in-one-state-work-in-another-checker?home=wi&work=ky) | ## The form: 42A809 Certificate of Nonresidence. Filed with the employer so future wages are exempt from Kentucky withholding. A qualifying nonresident with Kentucky tax already withheld and no other Kentucky income files Form 740-NP-R to get a refund. Hiring in another state? [Employer registration in Kentucky, done for you](/bookkeeping/out-of-state-employer-registration), or [a free bookkeeping health check](/bookkeeping/health-check). "Form 42A809, Certificate of Nonresidence" ## Conditions that apply to every partner - Reciprocity doesn't apply to someone who lives in Kentucky more than 183 days during the tax year. Gambling income and K-1 distributive share income aren't covered. ## In the official words "Kentucky has reciprocal agreements with specific states." "The wages paid to nonresidents of Kentucky are subject to withholding" ## Credit for tax paid to other states "The taxpayer claiming the credit must be a Kentucky resident." The income must come from outside Kentucky, the tax must actually be paid to the other state, and the credit is limited to the Kentucky tax on that income or the tax paid, whichever is less. **Not confirmed on the pages we read:** a convenience of the employer rule, a days-in-state threshold. ## Official sources - [Kentucky Department of Revenue: 2025 Form 740-NP instructions, reciprocal agreements](https://revenue.ky.gov/Forms/740-NP%20Packet%20Instructions%20(2025).pdf) (checked November 2026) - [Kentucky Department of Revenue: Form 42A809, Certificate of Nonresidence](https://revenue.ky.gov/Forms/42A809.pdf) (checked November 2026) - [Kentucky Department of Revenue: KY-TAM-18-03, Credit for Income Tax Paid to Another State](https://revenue.ky.gov/DOR%20Training%20Materials/KY-TAM-18-03%20Credit%20for%20Income%20Tax%20Paid%20to%20Another%20State%20FINAL%20(UPDATED%20HYPERLINKS).pdf) (checked November 2026) - [Kentucky Department of Revenue: 103 KAR 18:010, Employers required to withhold](https://revenue.ky.gov/DOR%20Training%20Materials/103%20KAR%2018.010.%20Employers%20required%20to%20withhold.pdf) (checked November 2026) General information, not tax advice. Checked November 2026 against the official pages listed above. Agreements, forms and thresholds change, and your own facts (where you lived, where you worked each day, other income) decide the answer; check with a tax professional for your situation. MCC Solutions is not a CPA firm and is not affiliated with any tax agency. ## Questions about Kentucky **Which states have a reciprocal agreement with Kentucky?** Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia and Wisconsin. Kentucky's page puts it this way: "Kentucky has reciprocal agreements with specific states." **Which form does a nonresident give a Kentucky employer?** Form 42A809, Certificate of Nonresidence. Filed with the employer so future wages are exempt from Kentucky withholding. A qualifying nonresident with Kentucky tax already withheld and no other Kentucky income files Form 740-NP-R to get a refund. **Are there conditions on the Kentucky agreements?** Reciprocity doesn't apply to someone who lives in Kentucky more than 183 days during the tax year. Gambling income and K-1 distributive share income aren't covered. Virginia: Virginia residents must commute daily to the job in Kentucky. Ohio: Not for an Ohio resident who is a 20 percent or greater direct or indirect equity investor in an S corporation, for wages from that S corporation. **Does Kentucky withhold from nonresidents from other states?** Yes, unless an agreement or exemption applies. The official wording: "The wages paid to nonresidents of Kentucky are subject to withholding." **Do Kentucky residents get credit for tax paid to another state?** "The taxpayer claiming the credit must be a Kentucky resident." The income must come from outside Kentucky, the tax must actually be paid to the other state, and the credit is limited to the Kentucky tax on that income or the tax paid, whichever is less. All states: [reciprocity agreements by state](/bookkeeping/state-tax-reciprocity-agreements) · [Live in one state, work in another](/bookkeeping/live-in-one-state-work-in-another-checker) · [Indiana](/bookkeeping/state-tax-reciprocity-indiana) · [Maryland](/bookkeeping/state-tax-reciprocity-maryland) Working across a state line? ## Multi-State Worker Tax Organizer Log every workday by state, total the days, and flag whether your home and work states have an agreement, with a Kentucky checklist of the forms to give your employer. 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