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Not applicable
posted Jun 4, 2019 4:54:24 PM

I am an IL resident that also worked in KY. Per the reciprocal agreement between IL-KY, I should not be paying any taxes to KY. However, TurboTax is asking $1000 for KY?

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1 Replies
Expert Alumni
Jun 4, 2019 4:54:25 PM

You might not need to file a KY return at all.  If no KY tax is shown in Box 17, delete the KY return.  If there is tax there, then you want to file a nonresident reciprocal return for KY and not a KY nonresident return.

If what you see on the KY W2 is local tax withheld (in Box 19), these are not a part of the reciprocal agreement, but Illinois does allow you to claim a credit for these taxes.  Follow the screenshots at the bottom of the screen (they are from last years program, but still work this year) to claim this credit: