Your income goes to Indiana. Kentucky and Indiana are reciprocal states, so if you work in one, but live in the other, you only pay tax to the state where you live (Indiana). However, you do want to check the unemployment form to see if any state tax was taken out to Kentucky. If this is the case, you will want to file the Kentucky nonresident reciprocal return in order to get all of these taxes back. However, since all of you income is taxed in Indiana, you might owe them a bit, and getting this amount back will help cover that gap. Here is an FAQ on reciprocal states: https://ttlc.intuit.com/replies/4776822
Your income goes to Indiana. Kentucky and Indiana are reciprocal states, so if you work in one, but live in the other, you only pay tax to the state where you live (Indiana). However, you do want to check the unemployment form to see if any state tax was taken out to Kentucky. If this is the case, you will want to file the Kentucky nonresident reciprocal return in order to get all of these taxes back. However, since all of you income is taxed in Indiana, you might owe them a bit, and getting this amount back will help cover that gap. Here is an FAQ on reciprocal states: https://ttlc.intuit.com/replies/4776822