Since no KY state taxes were withheld from the Form 1099-NEC, it will not be included on the KW-2 form.
The business income included on the Federal return on Schedule C is part of the Federal Adjusted Gross Income (AGI), which is the starting point for the KY state tax return. As you go through the KY return, you should be able to indicate that the business income is attributable to KY.
@Amy Badlands
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