You are correct on all counts. If you had Kentucky state tax taken out, then you need to file a KY nonresident reciprocal return to get all of those back. Also, make sure the correct form is filled out for the KY employer so they stop taking out KY taxes. (FAQ at end of answer)
If KY state taxes were not taken out, you won't need to file a a KY state return. But you still will be able to claim the KY local taxes on the Indiana return. I'll provide you with some screenshots to show where you enter this in TurboTax. (You'll need both of these entries to get the credit)
Here's the FAQ: https://ttlc.intuit.com/replies/4776822
And here are the screenshots:
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
