@TomK2023 said "You can simply add this information to your first KY W2 information".
That's essentially correct. But, your "normal w2 from the same employer" most likely has IN in box 15, rather than KY. You want to enter this KY local info as a 2nd line of boxes 15-20, at the W-2 screen, with KY in box 15.
What is this 2nd W-2 all about? KY and IN have a reciprocal agreement, on wages. No KY state taxes are withheld or due and you do not normally need to file a KY return. IN will tax you on your KY income.
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However the reciprocity agreement does not apply to local city or county taxes. The KY city/county is allowed to withhold tax from your pay. You can not get that withholding refunded. That's what's showing in boxes 18-20. If you itemize deductions on your federal return, the box 19 amount is deductible. Most IN counties (but not the state) allow a credit, or partial credit for local tax paid/withheld in another state. That will come up in the IN state interview.
