I think I have this figured out, no thanks to the tax professionals. I noticed when I put down IN for both lines it gives you a credit for the Indiana return, which you can claim local taxes paid to another state when you work in Kentucky and live in Indiana. I put down IN & KY for the associated states based on the county’s and received the same amount of credit on my Indiana return as if I chose IN for the associated state for both lines on the federal return. The claim this as “double dipping” if you select IN for both lines & select the local tax credit on your state return. I hope this makes since.
