re: #147 wheat-dogghazi-mailgate

For a while, I worked in Louisville, but lived across the river in Indiana. I had to file state tax returns in two jurisdictions, and my employer was obliged to deduct state and local taxes from my pay. But, I could use those outside taxes as deductions on my state tax returns.

Kentucky now has reciprocal agreements with surrounding states, including Indiana. Today, you would only have Indiana state taxes deducted from your Kentucky pay, unless Kentucky’s income tax rate was higher, then you pay the difference to Kentucky in addition to what you paid Indiana.