I live in Indiana...but work in Kentucky...what do i do ...for only half the year in each state....do i put my residence as Indiana or ky

[CarolC]

Your residence is Indiana.   And if your wages consisted of only W-2 earnings then you do not need to file a Kentucky tax return.  Unless taxes were withheld on your W-2 for the State of Kentucky and you are filing a Kentucky return to get a refund of the amount withheld.  If indeed your taxes were withheld from Kentucky, ask your employer to withhold taxes in your resident state.  Submit this form to your employer:  42A809.

Indiana and Kentucky have reciprocal agreements.  A reciprocal agreement "is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state."  If you live in one state and work in the neighboring state, you only pay taxes on your W-2 wages in the state where you live.

See this TurboTax FAQ What is a state reciprocal agreement? for additional information.

[Edited 1.23.18 | 9:40 PM]

[CarolC]

@ihsthsway The answer to your question has been updated.  Wanted to make sure you see the new information.