Live in Indiana, employer withheld Kentucky State tax by accident - what are my options?

[hroby]

I live in Indiana as a full-time resident and work full-time in Kentucky. My employer did not have ANY Indiana taxes withheld from my paychecks in 2022, but instead had Kentucky income taxes withheld as if I live there. It has been corrected going forward, but I'm trying to figure out (and hoping there is a way) to get the Kentucky state tax refunded to me so I can correctly pay Indiana.

Can someone help me with what I need to do? The way I have filed now, I lose all the money that was withheld for Kentucky and ALSO owe Indiana since they didn't get any money from me at all! Please help! 

[ThomasM125]

You need to file a Kentucky non-resident tax return. If you owe no taxes to Kentucky, you will get a refund of the taxes you paid to them and can use the refund to pay your Indiana taxes. Depending on the tax laws in Kentucky, you may have a tax liability there since you were working there. If so, when you prepare your Indiana tax return, look for an option to get credit for taxes paid to another state, and your Indiana taxes will be reduced by the taxes you paid to Kentucky.

[Hal_Al]

KY has a specific form (740 NP-R ) for a reciprocal state refund. Rather than paying TurboTax for KY software, you should try filing that form by hand. It looks pretty  simple.  Get it here: http://www.in.gov/dor/4733.htm