Oh, if you are still in training I definitely would NOT change domicile to Kentucky. When you are in the military (active duty) you can keep your state of residence when you enlisted, and so you file and pay tax to that state and not in the state you are at. It keeps some consistency if you get moved a lot. If you put the KY address in Turbo Tax, it adds KY as state to file- and you are correct it is not as important if you are direct deposit but if the IRS needs to contact you for any reason, they mail first so you want to have a current address on file with them.
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