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The unemployment benefits belong in KY's bucket. Unemployment benefits are subject to tax by the state where you live and receive them, not where your job was located.
The IN tax that was withheld from your unemployment is still IN tax. KY won't refund it to you or apply it to any other tax you might owe KY. Depending on your other 2020 income from IN, you may get all or part of those IN taxes refunded, but you will have to file an IN return to do that.
(The reciprocal agreement between KY and IN covers earned income; unemployment is, by definition, un-earned income).
Thank you! That is exactly the information I needed. I sincerely appreciate your helping me.
I have already purchased Indiana's state tax from Turbo Tax and I do not need it. How do I go about getting a refund?
Please reach out to TurboTax Customer Support via the link below to request a refund. Use the keywords billing issues so you get to the right person.
What is the TurboTax phone number?
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