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Live in KY, work in IN

My husband and I live in KY, but my husband works in Indiana, I work in KY.  They are reciprocal states.  KY state taxes were taken out of his pay, no Indiana state taxes were taken, but local Indiana county taxes were taken. When I start my federal return, what should I answer when asked if he earned income in another state?  I have seen different answers throughout the discussions. Do we need to file an Indiana state return even if no Indiana taxes were taken out?