State taxes

Forum|Forum|4 years ago
March 9, 2022
1 reply
9 views

I live in Indiana and work for a company in KY and my wife lives in Indiana and works for a company in Massachusetts, do we have to file state taxes in KY and Massachusetts if our W-2's show Indiana state taxes were taken out in box 15? We do show some local taxes in KY where I worked. How do we handle those?

DaveF1006

Level 15

It depends. If she worked in Indiana and if the company was based in Massachusetts, she will not need to file a Massachusetts state return. If she worked in Massachusetts however, then she will need to file a return in that state.

Kentucky has a reciprocal agreement with Indiana, so if you live in Indiana but work in Kentucky, and the only income you have from Kentucky is wages, then you will only pay tax in your home state. You are supposed to give form 42A809 to your employer to have on file so they won't withhold taxes from your pay. So if you haven't submitted this to your employer, do so now.

You might wish to file a Kentucky state return to get some of that withholding back but if it is a small amount, then leave it as you will need to pay an extra Turbo Tax charge to file an additional state return.

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