State Tax

I am a resident of Kentucky.  I have Schedule C income all earned in Ohio.  I’ve completed Ohio state return and owe $0 tax due to business deduction.  Should the income also be included in my Kentucky return?

Turbo Tax has included it in KY taxable income.  It appears that I would get to deduct any tax paid to Ohio, but since there wasn’t any, I owe Kentucky.  Is this correctr or did I miss a box to exclude this income from KY?