My husband and I live in Indiana. My husband's employer is located in Kentucky, but he is working from home the entirety of 2020 due to COVID. I work in Indiana. The HR department at my husband's employer did not realize his department was working from home until 12/2020. State taxes were taken out for Indiana for my husband, but not for Kentucky. Local taxes however were taken out for both Indiana and Kentucky. Also, the local wages reported for Indiana and Kentucky in box 18 on the W2 are different, Kentucky is reported at a higher wage amount than Kentucky. Do we need to file state taxes for both Indiana and Kentucky, although no state takes were taken out for Kentucky, only local. Also, should we expect an refund for local taxes paid for either Kentucky or Indiana, or are these local taxes due for each state?
