I agree with SteamTrain. You do not file a KY return because of the reciprocal agreemnet,
Very important: In the personal info section, when it asks if you made money in another state, answer NO, per the reciprocal state instructions, on that page. This will prevent TurboTax from thinking you need to file an KY return.
However the reciprocity agreement does not apply to local city/county taxes. You are not required to file a local city return, but you are also not entitled to a refund of the city withholding (box19 on your W-2), unless there was an error in the amount.
Most IN counties (but not the state) allow a credit, or partial credit for tax paid to a KY city or county. That will come up in the IN state interview. For how to enter, see: https://ttlc.intuit.com/questions/4699137-i-see-no-separate-question-for-school-taxes-in-indiana-lik...
