I live in Illinois and work in Kentucky. I understand they are reciprocal states. I pay a local tax in KY (Paducah). Do I claim this tax on my Illinois return? If so, how do I specify it is local an

You will report your local taxes paid to Paducah on your W-2 Box 19 in your Federal interview. This will automatically import into your Illinois state tax return.

Don't try to enter a second time of your credit will be wrong.