I live in Indiana and work in Kentucky. It's my understanding NOW I don't have to file state taxes with Kentucky. Why is filing with Kentucky even An option, in TurboTax?? I paid an extra $20 that I did not need to pay, to file Kentucky state taxes I don't have to file.I won't be using TurboTax next year.

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shallmann

Level 2

Solved

State Taxes

Forum|Forum|2 years ago
February 26, 2024
1 reply
0 views

I live in Indiana and work in Kentucky. It's my understanding NOW I don't have to file state taxes with Kentucky. Why is filing with Kentucky even An option, in TurboTax?? I paid an extra $20 that I did not need to pay, to file Kentucky state taxes I don't have to file.

I won't be using TurboTax next year.

Best answer by Hal_Al

So, even though I DID make money in another state, I should answer No?

Q. So, even though I DID make money in another state, I should answer No?

A. Yes. For tax purposes, working in a reciprocal state is not making money in another state. That is, you did not make money, in that other state, that was taxable by that other state.

PaulaM

Alumni - Expert

It's there in case Indiana residents had Kentucky taxes withheld from their paychecks. If so they would have to file in the non resident state to receive a refund of the money withheld.

It's for taxpayers who may not have filed an exemption form with their employers.

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Hal_Al

Level 15

In the personal info section, when it asks if you made money in another state, answer NO, per the reciprocal state instructions, on that page. This will prevent TurboTax from thinking you need to file an KY return.