Maybe you can get some back. Indiana localities tax you if you work there or if you live there. While there is a reciprocal agreement between KY and IN for state taxes, local taxes are not a part of the reciprocal agreement, and KY does not allow a credit for taxes paid to a locality in another state (because your KY locality, perhaps Owensboro, does not tax you on income you earn outside of the locality).
However, you can attempt to file an Indiana nonresident reciprocal return. If they overwithheld your local taxes or you can claim some extra credits or deductions, you may be able to claim some of these taxes back. Chances are, however, that they have withheld the exact amount and you do not need to file a nonresident reciprocal return. (The return is not required unless Indiana state taxes have been withheld mistakenly).
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