If my spouse worked for a company in Indiana and made deliveries & sales in Kentucky is that considered making money in another state?

It depends on the laws of the state.  KY has tax reciprocity agreements with several states (Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, and Wisconsin).  The reciprocity agreement is that residents of these states are not taxed by KY on income earned in KY but will be taxed only by their resident states.  You typically do not need to file in KY if you are resident in one of these states.  

If you resided in one of these reciprocity states but taxes were mistakenly withheld from pay for KY state taxes, you will need to file a non-resident return with KY to get those refunded.  If that is the case, then you would indicate in the "My Info" section that you earned money in another state and select KY to generate the KY non-resident forms.  

Then, after entering the income information from forms W2, you would work the KY non-resident interview and allocate zero income to KY.  This will trigger a refund of all KY withheld taxes entered on your form W2.

If you were resident in some other non-reciprocity state, then you would indicate you earned money in another state and select KY.  Again you would allocate to KY in the state interview only income earned while in KY.  On your resident state return you would claim a credit for taxes paid to another state.