What is it that you are trying to Do. "Normally", you do not need to file an IN state return.
In the personal info section, when it asks if you made money in another state, answer NO, per the reciprocal state instructions, on that page. This will prevent TurboTax from thinking you need to file an IN return.
IN has a reciprocal agreement, on wages, with KY. No IN state taxes are withheld or due and you do not normally need to file an IN return. But KY will tax you on your other state income.
If IN state taxes are mistakenly withheld, you then have to file an IN return to get a refund. KY will not give you a credit.
IN has a specific form (IT-40RNR) for a reciprocal state refund. Rather than paying TurboTax for IN software, you should try filing that form by hand. It looks pretty simple. Get it here: http://www.in.gov/dor/4733.htm
However the reciprocity agreement does not apply to local IN county taxes. You can not get those refunded, but if you live in a KY city or county with a tax, they may give you a credit or partial credit. Many do. You need to check with your KY city/county.
