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diegtap
New Member

I live in Kentucky but I work in Indiana. My employer records my earnings as living in Kentucky, but my form here does not show Kentucky taxes at all.

I'd like to know if I should continue the claim with zero input about Kentucky taxes, or if I should go see an accountant because Turbo Tax does not seem to figure that out — and wants me to pay extra $100 to ask one of their reps.
2 Replies
DaveF1006
Employee Tax Expert

I live in Kentucky but I work in Indiana. My employer records my earnings as living in Kentucky, but my form here does not show Kentucky taxes at all.

At the request of TomD8, I am editing my original answer.  No, Indiana and Kentucky have a reciprocal agreement whereas if you live in Kentucky, but work in Indiana, your Indiana employer will not withhold taxes and you won't have an Indiana filing requirement. It may have been because you submitted a form to request that your Indiana  employer not withhold taxes but withhold Kentucky taxes instead. 

 

Your only responsibility is to file an Kentucky State return.  If you started a Indiana return, delete it from your State returns.

[Edited 02-10-2021|13:35 PST]

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TomD8
Level 15

I live in Kentucky but I work in Indiana. My employer records my earnings as living in Kentucky, but my form here does not show Kentucky taxes at all.

@DaveF1006 wrote "Your only responsibility is to file an Indiana State return.  If you started a Kentucky return, delete it from your State returns."

 

No.  As a Kentucky resident, your only responsibility is to file a Kentucky tax return.  Your income is 100% taxable by your home state of Kentucky.

 

Assuming your income from Indiana consists entirely of W-2 wages, salary, or commissions, you do not have to file an Indiana tax return.  

 

If your employer cannot or does not withhold KY taxes, you should make quarterly estimated tax payments to Kentucky to avoid any penalties.  You'll find the instructions for that here:

https://revenue.ky.gov/Forms/740-ES%20Instructions.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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