KY reciprocity return and unemployment

[samjohnson11]

Hello everyone,

I'm getting ready to finish my taxes for 2020.

Me and my wife live in Indiana, but mostly work in KY. I also had unemployment from KY and state tax was being deducted on that income. 

My questions are:

1. If I can still file reciprocity return like I did in the previous year, it says you can file that only if you receive only wages and salary, not sure if unemployment would go into wages?

2. My turbotax shows refund for KY, but when I change my return for KY to reciprocity my refund goes to $0, why is that and how can I fix it?

Thank you,

Sa,

[Hal_Al]

" I also had unemployment from KY and state tax was being deducted on that income. "

I assume you mean they deducted KY state tax. They shouldn't have.

I haven't seen the issue before.  You may have to call KY tax people for am answer.  I'm not sure if that will count as reciprocal state income.  But I suspect the issue is common enough, this year, that they will have a quick answer for you.  Please  let us know what you find out.

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.

https://revenue.ky.gov/Forms/Form%20740-NP-R%202018.pdf