How do I fix rejection code WA-F740-0059?

[kmhubbard1]

It just tells me I’ve visited it. It’s been rejected twice. I think there’s something I need to change but I’m not getting any help on that. I don’t understand where the error is.

[HelenC12]

WA-F740-0059 is a rejection code coming from the Kentucky Department of Revenue in the category of Incorrect Data.

"KY residents must report all income received including income from sources outside KY. Within certain limitations, a credit for income tax paid to another state may be claimed on Worksheet A. Full year nonresidents may not claim this credit. The credit is limited to the amount of tax paid to the other state or the amount of KY tax savings had the income reported to the other state been omitted, whichever is less. A return must be filed with the other state in order to claim this credit. Credit for tax withheld by another state is not allowed. A credit for tax paid to a reciprocal state on certain types of income is not allowed. The type of income reported to the other state must be listed on Worksheet A. (See Worksheet A instructions for limitations and reciprocal state information.)"

If you had income from other states and are a Kentucky resident, Kentucky still wants to see that income, even though it may give you credit for taxes paid to another state, so you are not double taxed on the same income.

At the beginning of the return, in the Personal Info section, it will ask if you made money in any other states. If you did not, please make sure this is checked No.
 

If you have income from another state, please prepare the return for your non-resident state first, and then prepare your resident state return.

Source: Employee Tax Expert TeresaM

[kmhubbard1]

I don’t understand what i need to fix. I have been rejected 3 times. I did earn income in Ohio so shouldn’t I say yes? My Ohio taxes are complete. I don’t know where the mistake is. 

[AmyC]

If you are a KY resident, you report all income earned for the whole year from the whole world to KY. If you are a KY nonresident, you report only the income earned in KY.

Look at your return and see if you are reporting too much or too little and correct the situation.

If you are an Ohio resident, your return would have a credit for KY income. If you are a KY resident, your return will have a credit for OH income.

Check your return to see that you have credit.