Question

Why do I owe state

Forum|Forum|6 years ago
February 5, 2020
1 reply
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Hello, I moved from Connecticut to Kentucky and this is the first time I worked a full year and didnt get state refund? I live in Kentucky and work in Indiana, I was told that the 2 states have an agreement not to worry, but I paid 1,600 to state and it shows I owe 4 dollars?...In the past 10yrs Ive always received refund for my state...Im confused..please help me!

DaveF1006

You will still need to file taxes in both states but Turbo Tax will recognize that you paid state taxes in one of the states. Usually what happens is that you will be given a refund in the state you worked in and will need to pay taxes for the state that you didn't.

Kentucky does have a reciprocal agreement with Indiana whereas they will not withhold taxes from your paycheck but you need to file form WH-47 with your human resources dept to prevent them from withholding taxes for the state of Indiana. Contact your human resource dept for further details.

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