You mention you get taxed by local county and city. Which state?
If KY, then IN and KY have a reciprocity agreement for the state taxes, but it does not include any lower taxes. Therefore you would include the KY city and county taxes for credit on your IN return. Here is a link with information from IN.
If you mean IN, then no. These are IN taxes.
edited 12:05 pm EDT 3/22/2020
Myself and my wife were taxed by the local county and city that we work in (KY) while living in Indiana.
No, states only give credit at the same level. You are looking at different levels of taxes, federal, state, county and city.
The US return gives credit for taxes paid to foreign countries.
The state gives credit for other states.
The city and county tax you for working there and using their resources with no credit to a state available.
Okay the question on turbo tax asks “did you pay non-Indiana local taxes during 2019 for which you did not receive a refund or a credit for Indiana county tax”. After answering yes “enter the following information from you form(s) W-2 that shows local taxes paid outside of Indiana.
what in an example of when someone would answer yes to this question?