Since you live in Alabama, you may have to do an Alabama Resident return if you meet these guidelines:
Who must file an Alabama individual income tax return?
Full year residents whose filing status is “Single” must file if gross income for the year is at least $4,000. Full year residents whose filing status is “Married Filing Separate Return” must file if gross income for the year is at least $5,250. Full year residents whose filing status is Head of Family” must file if gross income for the year is at least $7,700. Those whose filing status is “Married Filing Joint Return” and whose gross income for the year is at least $10,500 must file an Alabama income tax return.
Part year residents whose filing status is “Single” must file if gross income for the year is at least $4,000 while an Alabama resident. Full year residents whose filing status is “Married Filing Separate Return” must file if gross income for the year is at least $5,250 while an Alabama resident. Full year residents whose filing status is Head of Family” must file if gross income for the year is at least $7,700 while an Alabama resident. Those whose filing status is “Married Filing Joint Return” and whose gross income for the year is at least $10,500 must file an Alabama income tax return while an Alabama resident.
If your Kentucky home does not produce any income like rental or farm/timber then you do not need to file a tax return in KY.
You can deduct the interest and taxes on your KY home on your federal taxes if it was a primary or secondary home.
