topic If I live in Indiana and worked in Kentucky do I need to file state taxes in Kentucky if I didn't pay Kentucky state taxes? in State tax filing

If I live in Indiana and worked in Kentucky do I need to file state taxes in Kentucky if I didn't pay Kentucky state taxes?

brockdea — Thu, 06 Jun 2019 05:18:38 GMT

Not if your income from KY consisted solely of W-2 wages....

TomD8 — Thu, 06 Jun 2019 05:18:39 GMT

Not if your income from KY consisted solely of W-2 wages. Indiana and Kentucky have tax reciprocity. That means if you live in one of those states and work in the other, you only have to pay state taxes on your W-2 wages in the state where you live. So, assuming you were a full-year resident of Indiana, you're not subject to Kentucky state income tax on your wages. You would file an Indiana return only. For tax purposes, the income you earn in KY is considered IN income, and is fully taxable by IN. Note that the reciprocity agreement applies to W-2 wages only.

If reciprocity applies to you, in the My Info section enter IN as your state of residence and answer No to the question about having other state income.

Note: KY residents who work in IN must, however, file IN Form IT-40RNR, for purposes of figuring their IN county tax liability.

I lived in Indiana 11 mos , one mos in ky. Can they make...

dmeccanic — Thu, 06 Jun 2019 05:18:41 GMT

I lived in Indiana 11 mos , one mos in ky. Can they make me pay tax for that one month?

Yes. Income you earn as a part-year KY resident is taxab...

TomD8 — Thu, 06 Jun 2019 05:18:41 GMT

Yes. Income you earn as a part-year KY resident is taxable by KY.

Re: Yes. Income you earn as a part-year KY resident is taxab...

CaseyLWest55 — Thu, 27 Feb 2020 01:39:05 GMT

I am a full time resident in Indiana, I work in Kentucky. In "My info" I specified that I did not make money in another state. Now, when I am doing my State Return it is asking me what county in IN I worked in, so do I put down the same county as I did for my county of residence?

Also, on my check stubs I notice that I do not pay KY state tax, but there is money taken out for "Louisville Non-Res Local" do I need to do anything about that?

Re: If I live in Indiana and worked in Kentucky do I need to file state taxes in Kentucky if I didn't pay Kentucky state taxes?

Kingcl24 — Tue, 04 Aug 2020 22:40:57 GMT

I live in the state of indiana and work in the state of Kentucky.Is there any way that I can not have Kentucky state and city taxes come out of my check

Re: If I live in Indiana and worked in Kentucky do I need to file state taxes in Kentucky if I didn't pay Kentucky state taxes?

Hal_Al — Wed, 05 Aug 2020 01:10:04 GMT

Q. I live in the state of Indiana and work in the state of Kentucky.Is there any way that I can not have Kentucky state and city taxes come out of my check?

A. No.

IN & KY have a reciprocal agreement, on wages. No KY state taxes are withheld or due and you do not normally need to file a KY return. But IN will tax you on your KY state income.

However the reciprocity agreement does not apply to local city & county taxes. Your employer must withhold those and can not get those refunded. Some (but not all) 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.