I lived in Ohio but worked in Indiana - there is a state reciprocity agreement.
Also, does TurboTax let you enter both Copy B and Copy 2, or just one of the copies and that one serves as the W2 for that source of income (i.e. you can only enter one W2 copy for a source of income)?
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You treat the copies as if they are one W2. You will enter the Federal information as found on copy B (which is the Federal copy of the W-2), and then the Ohio information on lines 15-17 from copy 2, and, beneath that in TurboTax, the Indiana local taxes withheld in boxes 18-20 (associated with Indiana, not Ohio).
While Indiana and Ohio are reciprocal as states, the same is not true about the local taxes. However, the information may still be useful because your Ohio locality may give you a credit for the taxes you pay to the Indiana locality when you prepare your Ohio local return.
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