You live in Indiana and work in Kentucky where you paid the Jefferson County Kentucky Occupational Tax.
You will file an Indiana Resident tax return. On the Indiana Resident tax return, you will be liable for an Indiana County Tax for the county where you reside even though the W-2 did not withhold Indiana County Tax.
You will not have to file a Kentucky income tax return. The Jefferson County Kentucky Occupational Tax may be deducted on your Indiana Resident tax return as a Credit for Non-Indiana Local Taxes.
Kentucky has a reciprocal agreement with Indiana. If only W-2 income is involved, an Indiana resident working in Kentucky does not have to file a Kentucky income tax return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
