Indiana and Kentucky have tax reciprocity for W2 income. That means that if you're a resident of KY, your W2 income is not subject to IN state income tax (it may still be subject to IN local taxes).
If IN state tax was mistakenly withheld from your pay, you must file an Indiana tax return, using Indiana Form IT-40RNR, in order to receive a refund of those withholdings.
Since you are a resident of KY, all your income is taxable by KY, regardless of where you earn it.
You should file IN Form WH-47 with your Indiana employer, so that they will cease withholding IN state taxes. The form certifies your Kentucky residency. You can find that form here: https://www.in.gov/dor/tax-forms/withholding-tax-forms/
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
