It depends. If she worked in Indiana and if the company was based in Massachusetts, she will not need to file a Massachusetts state return. If she worked in Massachusetts however, then she will need to file a return in that state.
Kentucky has a reciprocal agreement with Indiana, so if you live in Indiana but work in Kentucky, and the only income you have from Kentucky is wages, then you will only pay tax in your home state. You are supposed to give form 42A809 to your employer to have on file so they won't withhold taxes from your pay. So if you haven't submitted this to your employer, do so now.
You might wish to file a Kentucky state return to get some of that withholding back but if it is a small amount, then leave it as you will need to pay an extra Turbo Tax charge to file an additional state return.
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