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Level 1

Solved

How can I file a non-resident reciprocal 740NPR? I keep getting prompted to but it keeps sending me in a circle.

Forum|Forum|4 months ago
January 23, 2026
1 reply
2 views

I have been an Indiana resident my entire life. Since I live right across the river, I commute to my job that is located in Kentucky. I am told to complete my non-resident state info first, but another form doesn't show up, and it takes me back to the state page. Anything helps!

TurboTax Online

Best answer by KrisD15

Expert Reviewed

Since you live and work in reciprocal states, you only file for the state in which you live, in your case, Indiana.

You would only file for a Kentucky refund if Kentucky tax was withheld, but your employer should have only withheld Indiana tax.

To clarify, was Kentucky Tax withheld on your W-2?

Was all your income listed as Indiana Wages in Box 15 and 16 on your W-2?

Usually, the non-resident state return needs to be done first in TurboTax so the state tax paid in the non-resident state is credited on the resident state return, but when the states are reciprocal, there will be no non-resident state tax and therefore no tax credit on your resident state tax return. Be sure your full taxable income from the W-2 shows as Indiana income.

If all your income shows as Indiana Income on your W-2, and no Kentucky tax was withheld, you needn't file a Kentucky return to claim a refund.

Level 15

Expert Reviewed

Since you live and work in reciprocal states, you only file for the state in which you live, in your case, Indiana.

You would only file for a Kentucky refund if Kentucky tax was withheld, but your employer should have only withheld Indiana tax.

To clarify, was Kentucky Tax withheld on your W-2?

Was all your income listed as Indiana Wages in Box 15 and 16 on your W-2?

Usually, the non-resident state return needs to be done first in TurboTax so the state tax paid in the non-resident state is credited on the resident state return, but when the states are reciprocal, there will be no non-resident state tax and therefore no tax credit on your resident state tax return. Be sure your full taxable income from the W-2 shows as Indiana income.

If all your income shows as Indiana Income on your W-2, and no Kentucky tax was withheld, you needn't file a Kentucky return to claim a refund.

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