State Taxes

[keatilr]

My son goes to college in Ohio, we live in Indiana (so Indiana is his permanent address) and he worked in Kentucky so he received a W2. Indiana state taxes for 692.41 were withheld, but no KY state tax. When I filed IN return he gets a refund but owes a huge KY State Tax - is this correct??

[MaryK4]

Kentucky and Indiana have a reciprocal agreement which allows residents of one state to file and pay in their resident state only if they work in the nonresident state if the proper state withholding was requested.  You do not have to file a Kentucky nonresident return for him and file/report the income on the Indiana return only.