Add them together and enter the total amount. There are a few jurisdictions, particularly within Louisville, that have their own separate local tax in addition to Metro Louisville or Jefferson County tax. If you live in Indiana, you can get a credit up to the total amount of local taxes you are paying to KY localities, which will be credited against Indiana local tax that you would owe on the same income.
You seem to see the correct place to enter this information in TurboTax, but just in case, here's a screenshot to assist you:
I added the 2 Jefferson County local income taxes on my Indiana 2018 taxes and I just received a notice from Indiana that they have been removed them from my Indiana Schedule 5. Indiana is saying I owe for the amount that was paid to Jefferson county Kentucky. Is it correct that the should be billing me for the amount I paid to Kentucky?
first the credit should be on schedule 6
did you submit required support
Line 1 – Credit for Local Taxes Paid Outside of
Indiana
If you figured county tax on Form IT-40, line 9, and had to pay a local
income tax outside Indiana, you may be able to take a credit. This
credit applies only if the tax you paid outside Indiana was to another
city, county, town, or other local governmental entity, and they did not
refund the tax, or give you a credit for Indiana county tax.
The credit can be used to reduce your county tax liability. Carefully
read instructions for Line B below.
Complete lines A, B and C to figure your credit.
A. Enter the amount of tax paid to the
non-Indiana locality ..............................................A___________
B. Multiply the amount of income taxed by
the non-Indiana locality by the rate from
Schedule CT-40, line 2. Enter result here ...........B___________
C. Enter the amount of Indiana county
income tax shown on Form IT-40, line 9 ...........C___________
The amount of the credit is the lesser of the amounts on A, B or C.
. Important. You must enclose either a copy of your W-2s or other
withholding statements showing the non-Indiana locality amount
withheld or a copy of the non-Indiana locality tax return.
Remember, you can use this credit only if you have both:
• A county tax amount on Form IT-40, line 9, and
• A local income tax that you had to pay outside Indiana
Combined Limitation: There is one final limitation if you claim
more than one credit on lines 1 through 3 of Schedule 6. These credits,
when combined, cannot be greater than the county tax shown on Form
IT-40 line 9; if they are, adjust the amounts before you enter them