Kentucky non-resident return

[ReadingChip]

Pennsylvania full year resident earned $1639.04 in Kentucky in 2019.

What Kentucky form do I use to get refund for $71.99 withheld rather than being taxed on entire amount reported for federal taxes. KY form trying to tax our entire earnings on Federal return.

[JotikaT2]

You should be using Form 740-NP.  This is the Kentucky Nonresident return.  Your KY adjusted gross income should only reflect the amount you earned in KY.  The calculation splitting your income between Kentucky and your total income is allocated on page 4.  This percentage is transferred to page 1 to calculate tax on your income.

Form 740-NP for reference

I recommend going back and reviewing your input under the "My Info".

1. On the black panel on the left, select "My Info"
2. Select "Edit" to the right of your name.
3. Scroll down the page and review the answers to your questions.
4. Ensure your answers to the state you lived in and any other state questions are answered correctly.

Pay special attention to the line at the bottom which asks if you earned money in another state.  Confirm this entry is completed for the job which is located outside the state of residence in Kentucky.

Once you enter this information, you should go back into the W-2 input under income.

Select Edit for this W-2 and scroll down to box 15, State & Local Taxes.  Confirm each state is entered correctly.

Then go back into the state returns starting with the nonresident return first.  Proceed through the questions. 

Then go into the resident state form and verify the questions are answered there as well.

Make sure you answer each question carefully to ensure the calculations pull through according to your sources of income within each state.