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February 26, 2025
Question

I live in IN and worked in KY. these two states have an agreement and I have always got back amount paid. Why is Turbo tax only giving me 72 out of the 600+ I paid

  • February 26, 2025
  • 1 reply
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    1 reply

    KrisD15
    February 26, 2025

    Indiana and Kentucky have a reciprocal agreement. 

    If you live in Indiana and work in Kentucky, you only pay tax to the state in which you live, Indiana.

     

    You should file Form 42A809 with your employer so they only withhold Indiana tax. 

     

    TurboTax knows they are reciprocal states, so file your Non-Resident Kentucky return first. (be sure to file as a non-resident) 

    Be sure to allocate ZERO income to Kentucky. 

     

    You should get all the Kentucky state tax back as a refund.

    If you paid any local tax, that tax may not be refunded since local governments are not always part of the reciprocal agreement. 

     

    Next, file your Indiana return and claim all your income. 

     

    If you are only getting 72 of the 600 that was withheld, please go back through the Kentucky return and make sure you are filing Non-resident and allocating NO income. 

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