[colleen_marie_]

My husband and I both live in tn and I work in tn. There is not a tn state tax, however my husband lives in ky. I am using taxact to fill out my 2010 federal taxes. Whenever I entered my w-2 information I was getting money back and owed nothing. Whenever I entered my husband's w-2 info, it says I owe ky state tax money. It is taking my income into account although I do not work or live in ky, only my husband works there. How do I get this to where it is not taking my income into account and only his?

[ebaines]

You say "my husband and i both live in tn" and also "my husband lives in ky." I'm guessing that what you meant is you both live in TN and your husband works in KY. Please verify that I have that right.

Since your husband works in KY, he does indeed owe income tax to KY. When you use Tax Act it should be working to complete non-resident KY tax return. It will require you to report your total income as a couple, but actually calculate tax only on your husband's KY-source of income. They require you to report all income - even yours - so that (a) they can see that what you are reporting is consistent with what you report on your federal return, and (b) to determine what tax bracket you belong in. But at the end, you pay tax only on your KY source(s) of income.