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It depends. You might not need to file a KY return at all, because Indiana and KY are reciprocal states and agree that you are only taxed in your home state of Indiana. Look at boxes 15-17 on your W-2, and see if there is a line for KY and taxes withheld to KY in Box 17. (If taxes are showing in Box 19, for local taxes, I describe below how to handle this). If there is nothing in Box 17 for KY, then delete the KY return. You won't need it.
If there are taxes withheld in Box 17 for KY, then you will file a nonresident reciprocal return (and not a regular nonresident return) for KY. Your taxes withheld to KY state will be refunded to you. But you will owe Indiana tax on this same income.
On your Indiana return, you may claim a credit for the local tax you pay to Louisville. See the following instructions to do this:
You will then be credited for the amount you might have paid to the Kentucky locality up to the amount you are taxed in your Indiana county on this same income.
It depends. You might not need to file a KY return at all, because Indiana and KY are reciprocal states and agree that you are only taxed in your home state of Indiana. Look at boxes 15-17 on your W-2, and see if there is a line for KY and taxes withheld to KY in Box 17. (If taxes are showing in Box 19, for local taxes, I describe below how to handle this). If there is nothing in Box 17 for KY, then delete the KY return. You won't need it.
If there are taxes withheld in Box 17 for KY, then you will file a nonresident reciprocal return (and not a regular nonresident return) for KY. Your taxes withheld to KY state will be refunded to you. But you will owe Indiana tax on this same income.
On your Indiana return, you may claim a credit for the local tax you pay to Louisville. See the following instructions to do this:
You will then be credited for the amount you might have paid to the Kentucky locality up to the amount you are taxed in your Indiana county on this same income.
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