my husband lives in indiana and works in ky.
there are 2 lines on the bottom of his w-2 (numbers are examples)
line 1 - box 15 state is blank employers state id blank Box16 state wages is blank Box17 state income tax is blank Box18 local wages $1000 Box 19 Local Income Tax $1000 Box 20 LOUISVIL (Louisville is in Kentucky)
line 2 - IN Employers state id 12346789 Box 16 $100,000 Box 17 $2000 Box 18 $100,000 Box 19 $.00 Box 20 Jeff Co (Jefferson County is in Kentucky)
We paid indiana state taxes and $0 indiana local taxes
We pay $0 Kentucky state taxes and $1000(per example above) Kentucky Local taxes for Louisville
and local taxes to louisville.
When I select Non-resident reciprocal State for Kentucky it calculates that we do not owe kentucky anything and kentucky does not owe us anything.
Please see screenshots of W-2 form and image of the federal tax return has state income entered.
Please advise on what needs to be resolved by who where etc.
Thanks,
