Hal_Al
Level 15

State tax filing

Rental income and self employment  is not covered by the reciprocity agreement. Only W-2 wages are.

If your rental activity is showing a net profit, you are required to file an IN return and pay IN tax.  KY will give you a credit or partial credit for any tax you pay to IN

 

If you have a net loss (you have no IN income), you do not need to file.