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Kentucky Free Printable  for 2024 Kentucky Form 740 Individual Full Year Resident Income Tax Instructions Packet

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Form 740 Individual Full Year Resident Income Tax Instructions Packet
Income Tax Instructions

COMMONWEALTH OF KENTUCKY DEPARTMENT OF REVENUE FRANKFORT, KENTUCKY 40620 42A740(PKT) (10-23) 2023 Kentucky Individual Income Tax Forms revenue.ky.gov   Electronic Filing—It’s to your advantage! Choose one of these easy methods! Federal/State Electronic Filing—Individuals who use a professional tax practitioner to prepare their Kentucky income tax return can file both their state and federal returns by using the E-File Program. With no data entry, you can have your refund in just a few short weeks. Federal/State Online Filing—This filing method offers the same benefits as the Federal/State E-Filing Program, but you prepare and file your return from the convenience of your own home computer. TAXPAYER ASSISTANCE—revenue.ky.gov Refund Inquiries—You may check the status of your refund at refund.ky.gov. This system is available 24 hours a day, 7 days a week, and is updated nightly. The following information from your return will be required: • Your Social Security number shown on the return. • The exact whole-dollar amount to be refunded to you. Kentucky Taxpayer Service Centers—Information and forms are available in the following locations: Ashland 1539 Greenup Avenue, Suite 501, 41101–7695 (606) 920–2037 Louisville 600 West Cedar Street 2nd Floor West, 40202–2310 (502) 595–4512 Bowling Green 201 West Professional Park Court, 42104–3278 (270) 746–7470 Northern Kentucky Turfway Ridge Office Park 7310 Turfway Road, Suite 190 Florence, 41042–4871 (859) 371–9049 Corbin 15100 North US 25E, Suite 2, 40701–6188 (606) 528–3322 Frankfort 501 High Street, 40601–2103 Owensboro Corporate Center 401 Frederica Street Building C, Suite 201, 42301–6295 (270) 687–7301 (502) 564–5930 (Taxpayer Service Center) (502) 564–4581 (General Information) (502) 564–3658 (Forms) Paducah Clark Business Complex, Suite G 2928 Park Avenue, 42001–4024 (270) 575–7148 Hopkinsville 181 Hammond Drive, 42240–7926 (270) 889–6521 Pikeville Uniplex Center, Suite 203 126 Trivette Drive, 41501–1275 (606) 433–7675 Kentucky Department of Revenue Mission Statement As part of the Finance and Administration Cabinet, the mission of the Kentucky Department of Revenue is to administer tax laws, collect revenue, and provide services in a fair, courteous, and efficient manner for the benefit of the Commonwealth and its citizens. * * * * * * * * * * * * * * * * * * The Kentucky Department of Revenue does not discriminate on the basis of race, color, national origin, sex, age, religion, disability, sexual orientation, gender identity, veteran status, genetic information or ancestry in employment or the provision of services. What’s New STANDARD DEDUCTION—For 2023, the standard deduction is $2,980. FAMILY SIZE TAX CREDIT—This credit provides benefits to individuals and families at incomes up to 133 percent of the threshold amount based on the federal poverty level. The 2023 threshold amount is $14,580 for a family size of one, $19,720 for a family of two, $24,860 for a family of three, and $30,000 for a family of four or more. INTERNAL REVENUE CODE DATE—HB 360 updated KRS 141.010(21) to change the Internal Revenue Code (IRC) reference date from December 31, 2021, to December 31, 2022, for purposes of computing corporation and individual income taxes. However, taxpayers who placed property into service after September 10, 2001 are required to compute Kentucky depreciation under IRC Section 168 according to the provisions in effect on December 31, 2001. Taxpayers who placed property into service after September 10, 2001 but before January 1, 2020 are required to compute the expense deduction under IRC Section 179 according to provisions in effect on December 31, 2001. Taxpayers who placed property into service on or after January 1, 2020 are required to compute the expense deduction under IRC Section 179 according to provisions in effect on December 31, 2003, except that the phase-out provisions of IRC Section 179, limiting the qualifying investment in property, shall not apply. REFUNDABLE PASS-THROUGH ENTITY TAX CREDIT—The Kentucky General Assembly passed HB 5 during the 2023 Regular Session that established a new Section of KRS Chapter 141 allowing an authorized person to make an annual election to file and pay income tax at the entity level on behalf of the pass-through entity effective for tax years beginning January 1, 2022. Individual owners filing Kentucky individual income tax returns with tax imposed by KRS 141.020 are allowed the refundable pass-through entity tax credit passed through on Form PTET-CR. The credit may be claimed on Kentucky Form 740 or Form 740NP, line 31(g), Refundable Pass-Through Entity Tax Credit. TREATMENT OF RESTAURANT REVITALIZATION GRANTS—For taxable years beginning on or after January 1, 2020, but before March 11, 2023, HB 360 provides that Kentucky will treat Restaurant Revitalization Grants in the same manner as the IRS. This means that the grants are not included in gross income and expenses paid for by funds from the grants are fully deductible. KENTUCKY ENTERTAINMENT INCENTIVE (KEI) TAX CREDIT—House Bill 303 made various changes to the KEI tax credit, allocating $25 million for approved continuous production film companies and clarifying that payroll expenditures of loan-out entities can be included in the credit calculation. Reminders REFUNDABLE DEVELOPMENT AREA TAX CREDIT—If you owned “residential property” on January 1, 2021 that was located in the West End Development area in Louisville, Kentucky you may be entitled to a refundable development area tax credit. To qualify for the credit, it must by your principal place of residence, located within the West End development area and owned as of January 1, 2021. Your credit will be equal to the amount in which the property tax timely paid on the residential property exceeds the amount of property tax assessed on that residential property on January 1, 2021. KRS 141.398. REFUNDABLE DECONTAMINATION CREDIT—For taxable years on or after January 1, 2022, but before January 1, 2032, a taxpayer making a qualifying expenditure at a qualifying decontamination property shall be allowed a refundable credit against the taxes imposed by KRS 141.020 or 141.040. The taxpayer must by approved by the Energy and Environment Cabinet per KRS 224.1-420. Maximum tax credit allowed to be claimed per taxable year is 25 percent of the approved credit. For more information regarding credit for decontamination, contact the Energy and Environment Cabinet at 502-5646716. A copy of the approved application must be attached to the tax return claiming this credit. KRS 141.419. 1 This page has been intentionally left blank. 2 42A740(I) (10-23) 2023 Kentucky Individual Income Tax Instructions for Form 740 General Information Which form should I file? File Form 740 if you are a full-year Kentucky resident and meet the filing requirements in the Instructions for Form 740. File Form 740-NP if you are a nonresident and: • had income from Kentucky sources. or are a part-year Kentucky resident and: • moved into or out of Kentucky during the taxable year. • had income while a Kentucky resident. • had income from Kentucky sources while a nonresident. File Form 740-NP-R if you are a resident of a reciprocal state: Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia and Wisconsin and you had Kentucky income tax withheld and had no other income from Kentucky sources. Computer–Generated Returns and 2–D Barcode Most software packages produce a 2-D barcode. The Department of Revenue scans the barcode that contains all of the information needed to process your return. The barcode is printed in the upper right– hand corner of the return when you prepare your return using an approved software package. Last minute changes should be entered into the program and the entire return printed again so that the barcode also contains the correct information. This barcode should not be covered up or marked through. Using the barcode reduces data entry errors for the department and results in a faster refund for you. Check to be sure your software generates an acceptable form. A list of vendors whose software has been approved is posted on the Internet at revenue.ky.gov, the Department of Revenue’s website. Free Electronic Filing Options You may visit https://revenue.ky.gov/ Individual/Pages/FreeFileSoftware. aspx for free electronic filing options. You may qualify to file your federal and Kentucky individual income tax returns for free depending on your income level. Some offers require state and federal returns to be filed at the same time. The Kentucky Department of Revenue does not endorse any specific tax filing product. Each software company is responsible for the accuracy of the software program instructions and calculations. However, all software packages will produce a return which contains the required data fields. The Kentucky Department of Revenue does not offer technical assistance for these software products. You should contact the tax software customer service department if you have issues using any of the software products. Address Change If you move after you file your tax return, please notify the Kentucky Department of Revenue of your new address. This can be done by sending a change of address card (available at your local post office) to: Taxpayer Assistance Section, Kentucky Department of Revenue, P.O. Box 181, Station 56, Frankfort, KY 40602-0181. Notification can also be made to any Kentucky Taxpayer Service Center. A list of locations is included in your packet. Refund Inquiries You may check the status of your refund at refund.ky.gov. This system is available 24 hours a day, 7 days a week, and is updated nightly. The following information from your return will be required: Kentucky also offers another option for filing your state return electronically, free of charge. If you would like to fill out your Kentucky forms and schedules without sof t ware help or assistance you may use the K Y Fi le website. KY File allows you to file current year Kentucky individual income tax returns and is designed to be the simple electronic equivalent of a paper form. It will provide basic mathematical and error checks but unlike most other software it does not ask about or explain tax situations. Your federal forms should be completed before accessing the KY File website. You can access the KY File website at Filetaxes. ky.gov . • Your Social Security Number shown on the Where to Get Forms If you need a copy of your tax return, you must send your request in writing to: Taxpayer Assistance Section, Kentucky Department of Revenue, P.O. Box 181, Station 56, Frankfort, KY 40602-0181 or fax to (502) 564-3392. Please include your name(s) as it appeared on your return, Social Security number(s), your complete mailing address, and a photo ID. To ensure confidentiality, all requests must include your signature. Forms and instructions are available online from the Department of Revenue’s website at revenue.ky.gov and at all Kentucky Taxpayer Service Centers. They may also be obtained by writing FORMS, Kentucky Department of Revenue, 501 High Street, Station 23B, Frankfort, KY 40601, or by calling (502) 564-3658. 3 return. • The exact whole-dollar amount to be refunded to you. Information about electronically filed returns should be available within 72 hours of receipt. Information about other refund requests filed on paper will be available after the return has completed initial processing (approximately 12 weeks). Need a Copy of Your Tax Return? How Long Should Records be Kept? Keep a copy of your tax return, worksheets and records of all items appearing on it (such as Forms W-2 and 1099 or other receipts) until the statute of limitations runs out for that return. Usually, this is four years from the date the return was due or filed (with extensions), or the date the tax was paid, whichever is later. You should keep some records longer. For example, keep property records (including those on your home) as long as they are needed to figure the basis of the original or replacement property. Filing as an Injured Spouse on Your Federal Form 1040? Kentucky does not recognize the federal injured spouse form. Income tax refunds may be withheld by the department if you owe money to the Kentucky Department of Revenue, another state agency or the Internal Revenue Service. Kentucky law requires the offset of the entire refund if a joint return is filed. If spouses want to keep their tax liabilities and/ or refunds separate, each must file a separate tax form. If you choose to file separately on a combined return, for agencies other than the Department of Revenue, the refund will be apportioned between spouses, based on each spouse’s income. The indebted spouse’s refund will then be paid to the appropriate agency. Death of a Taxpayer If a taxpayer died before filing a return for 2023, the taxpayer’s spouse or personal representative may have to file and sign a return for that taxpayer. A personal representative c an be an executor, administrator or anyone who is in charge of the deceased taxpayer’s property. If the deceased taxpayer did not have to file a return but had tax withheld, a return must be filed to get a refund. The person who files the return should check the applicable deceased box at the top of the return. If your spouse died in 2023 and you did not remarry in 2023, you can file jointly or separately on a combined return. The return should show your spouse’s 2023 income before death and your income for all of 2023. You can also file jointly or separately on a combined return if your spouse died in 2024 before filing a 2023 return. Write “Filing as surviving spouse” in the area where you sign the return. If someone else is the personal representative, he or she must also sign. Death of Military Personnel Killed in Line of Duty KRS 141.019(k) exempts all income earned by soldiers killed in the line of duty from Kentucky tax for the year during which the death occurred and the year prior to the year during which the death occurred. The exemption applies to tax years beginning after December 31, 2001. The income exclusion applies to all income from all sources of the decedent, not just military income. The exclusion includes all federal and state death benefits payable to the estate or any beneficiaries. Amended returns may be filed for the year the soldier was killed in the line of duty and the year prior to the year of death. The amended returns must be filed within the statute of limitations period; four years from the due date, the extended due date or the date the tax was paid, whichever is later. If a combined return was filed, the exclusion would apply to the income reported in Column A or Column B of the Kentucky return attributable to the military member. If a joint return was filed, the income must be separated accordingly. Refunds will be issued in the names on the original return. Beneficiaries or estates that received death benefits that were included in a Kentucky return may file an amended return to request a refund of taxes paid on the benefit. The Department of Revenue will use the Veterans Administration definition for “in the line of duty,” which states that a soldier is in the line of duty when he or she is in active military service, whether on active duty or authorized leave; unless the death was the result of the person’s own willful misconduct. 4 Income Tax Withholding for 2024 You may elect to increase your withholding by updating your K-4 with your employer. Or if you do not expect to have any tax liability for the current year or you meet the modified gross income requirement, you may be entitled to claim an exemption from withholding of Kentucky income tax. 2024 Estimated Tax Payments Individuals who can reasonably expect to have income of more than $5,000 from which no Kentucky income tax will be withheld may be required to make estimated tax payments on Form 740-ES. However, if the amount of estimated tax is $500 or less, no estimated payments are required. Individuals who do not prepay at least 90% of the tax to be shown on the 2024 tax return, or 100% of the tax shown on the 2023 tax return, may be subject to a penalty for underpayment of estimated tax. For more information on calculating the penalty, please refer to Form 2210‑K. Prepayments for 2024 may be made through withholding, a credit forward of a 2023 overpayment or estimated tax installment payments. Estimated tax installments may now be made electronically at revenue.ky.gov, using Form EPAY, or when electronically filing your return using Form 8879-K, or through mailing a 740-ES with payment. The instructions for Form 740-ES include a worksheet for calculating the amount of estimated tax due and for making installment payments. These forms may be obtained from the Kentucky Department of Revenue, P. O. Box 518, Frankfort, KY 40602-0518, or any Kentucky Taxpayer Service Center, or by calling (502) 5643658. Return Adjustments Confidentiality If the Department of Revenue adjusts your return and you do not understand the adjustment(s), you may write to Taxpayer Assistance, Kentucky Depar tment of Revenue, P.O. Box 181, Station 56, Frankfort, KY 40602-0181, fax your request to Taxpayer Assistance (502) 564-3392, or call (502) 564-4581. Please include your name(s) as it appears on your return, complete Social Security Number(s), notice number(s), and daytime contact information. If you disagree with an adjustment made to your return, you must appeal the adjustment by submitting a written protest within 60 days of notification. Kentucky Revised Statute 131.190 requires the Department of Revenue to maintain strict confidentiality of all taxpayer records. No employee of the Department of Revenue may divulge any information regarding the tax returns, schedules or reports required to be filed. However, the Department of Revenue is not prohibited from providing evidence to or testifying in any court of law concerning official tax records. Also, Department of Revenue employees or any other person authorized to access confidential state information are prohibited from intentionally viewing such information without an official need to view. Amended Returns If you discover that you omitted deductions or otherwise improperly prepared your return, you may obtain a refund by filing an amended return within four years of the due date of the original return. You are required to file an amended return to report omitted income. For 2017 and later use form 740 and check the box for amended. For 2016 and prior, use Form 740-X. You may obtain these forms by contacting a Kentucky Taxpayer Service Center or writing FORMS, Kentucky Department of Revenue, P. O. Box 518, Frankfort, KY 40602-0518. You may also download forms at revenue. ky.gov the Department of Revenue’s website. Federal Audit Adjustments Taxpayers who have received a final determination of an Internal Revenue Service audit must submit a copy to the department within 180 days of its conclusion. The information should be submitted to the Individual Governmental Program Section, Kentucky Department of Revenue, P.O. Box 1074, Station 68, Frankfort, KY 40602-1074. The department may provide official information on a confidential basis to the Internal Revenue Service or to any other governmental agency with which it has an exchange of information agreement whereby the department receives similar or useful information in return. Extension of Time to File Taxpayers who are unable to file a return by April 15 may request an extension of time to file their return. Taxpayers may elect to file this request electronically or by mailing the extension to the Department of Revenue on or before the due date of the return. The request must state a reasonable cause for the inability to file. Inability to pay is not an acceptable reason. Acceptable reasons include, but are not limited to, destruction of records by fire or flood and serious illness of the taxpayer. Extensions are limited to six months. A copy of the Kentucky extension request must be enclosed with your paper return. If you file your return electronically, you must indicate that an extension was filed by checking the appropriate box in the software. Individuals who receive a federal extension are not required to request a separate Kentucky extension. They can meet the requirements by enclosing a copy of the application for automatic federal extension to the Kentucky return. 5 IRS extensions by e-file (by personal computer or a tax professional) — Enclose a copy of Form 4868 with the confirmation number in the lower right-hand corner of the form or a copy of the electronic acknowledgment. Military Personnel—Kentucky residents who are in the military are often granted extensions for tax filings when serving outside the United States. Any extension granted for federal income tax purposes will be honored for Kentucky income tax purposes. Combat Zone Extension—Members of the Army, Navy, Marines, Air Force, or Public Health Service of the United States government who serve in an area designated as a combat zone by presidential proclamation shall not be required to file an income tax return and pay the taxes, which would otherwise become due during the period of service, until 12 months after the service is completed. Members of the National Guard or any branch of the Reserves called to active duty to serve in a combat zone are granted the same extension. Interest and Penalties—Interest at the “tax interest rate” applies to any income tax paid after the original due date of the return. If the amount of tax paid by the original due date is less than 75 percent of the tax due, a late payment penalty may be assessed (minimum penalty is $10). Interest and penalty charges can be avoided or reduced by sending payment with your extension request by the due date. If you wish to make a payment prior to the due date of your return when using the: (1) Kentucky Extension—Complete Section II, Kentucky Extension Payment Voucher, of the Application for Extension of Time to File, Form 740EXT, and send with payment. Write “KY Income Tax—2023” and your Social Security number(s) on the face of the check. (2) Federal Automatic Extension—Make a copy of the lower portion of the federal Application for Automatic Extension, Form 4868, and send with payment. Make check payable to Kentucky State Treasurer, write “KY Income Tax–2023” and your Social Security number on the face of the check. Enclose the check, Federal extension and send to Kentucky Department of Revenue, Frankfort KY 40620-0009. Personal Property Forms Kentucky business taxpayers are reminded to report all taxable personal property, except motor vehicles, owned on January 1 to either the property valuation administrator in the county of residence (or location of business) or the Office of Property Valuation in Frankfort. Tangible personal property is to be reported on the Tangible Personal Property Tax Return, Form 62A500. The due date for this return is May 15. Do not mail this return with your income tax return; use a separate envelope.  Kentucky State Treasury—Unclaimed Property Individuals—The Kentucky State Treasury may be holding unclaimed property for you or your family. The Treasury holds hundreds of millions of dollars from bank accounts, payroll checks, life insurance, utility deposits, and other types of property that have been unclaimed by the owners. Please visit treasury.ky.gov or www. missingmoney.com for more information on how to locate and claim any funds that may belong to you. Businesses—Kentucky businesses are required to comply with the Kentucky Revised Uniform Unclaimed Property Act, codified as KRS Chapter 393A. If you have uncashed vendor checks, payroll checks, unclaimed customer deposits or refunds, or other types of property belonging to third–parties, you may be required to turn the property over to the Kentucky State Treasury.  Please review KRS Chapter 393A, or visit treasury.ky.gov for more information. 6 2023 FEDERAL/KENTUCKY INDIVIDUAL INCOME TAX DIFFERENCES The chart below provides a quick reference guide to the major federal/ Kentucky differences. It is not intended to be all inclusive. Items not listed may be referred to the Department of Revenue to determine Kentucky tax treatment. Kentucky income tax law is based on the federal income tax law in effect on December 31, 2022. The Department of Revenue generally follows the administrative regulations and rulings of the Internal Revenue Service in those areas where no specific Kentucky law exists. PROVISION   1. Interest from Federal Obligations FEDERAL TAX TREATMENT KENTUCKY TAX TREATMENT Taxable Exempt   2. Retirement Income from: Commonwealth of Kentucky Retirement Systems Taxable Kentucky Local Government Retirement Systems Taxable Federal and Military Retirement Systems Taxable Partially exempt if retired   after December 31, 1997;   exempt if retired before   January 1, 1998;   Schedule P may be required 3-year recovery rule eliminated 3-year recovery rule retained Taxable 100% excludable up to $31,110 per taxpayer; Schedule P may be required   5. Benefits from U.S. Railroad Retirement Board May be taxable Exempt; Schedule P may be required   6. Social Security Benefits May be taxable Exempt   7. Capital Gains on Sale of Kentucky Turnpike Bonds Taxable Exempt   8. Other States’ Municipal Bond Interest Income Exempt Taxable   9. Kentucky Local Government Lease Interest Payments Taxable Exempt 10. Capital Gains on Property Taken by Eminent Domain Taxable Exempt 11. Election Workers—Income for Training or Working at Election Booths Taxable Exempt   3. Pensions and Annuities Starting After 7/1/86 and Before 1/1/90   4. Other Pension and Annuity Income 12. Artistic Contributions Noncash contribution allowed as Appraised value allowed as itemized itemized deduction deduction or adjustment to income 13. State Income Taxes Deductible Nondeductible 14. Leasehold Interest—Charitable Contribution May be deductible Deductible; Schedule HH required 15. Work Opportunity Credit (federal Form 5884) Tax credit allowed; wage expense reduced by amount of credit No credit allowed 16. Welfare to Work Credit (federal Form 8861) Tax credit allowed; wage expense reduced by amount of credit No credit allowed Tax credit based on expenses 20% of federal credit 17. Child and Dependent Care Credit 18. Family Size Tax Credit No credit allowed 19. Education Tuition Tax Credit Tax credit based on expenses 20. Child’s Income Reported by Parent Decreasing tax credit allowed Credit allowed   Form 8863-K required Permitted; taxed at parent’s rate Not permitted Taxable Exempt 22. Certain Business Expenses of Reservists Deductible Nondeductible 23. Moving Expenses for Members of the Armed Forces Deductible Nondeductible 24. Medical and Dental Expenses Deductible Nondeductible 25. Local Income Taxes Deductible—limited Nondeductible 26. Real Estate Taxes Deductible—limited Nondeductible 27. Personal Property Taxes Deductible—limited Nondeductible Deductible Nondeductible Nondeductible Nondeductible 21. Active Duty Military Pay 28. Casualty and Theft Losses 29. Job Expenses and Other Miscellaneous Deductions 7 This page has been intentionally left blank. 8 INSTRUCTIONS 2023 FORM 740 Do You Have to File a Kentucky Return? KENTUCKY ADJUSTED GROSS INCOME (Use Chart B if Modified Gross Income is Greater Than the Amounts in Chart A) If you were a Kentucky resident for the entire year, your filing requirement depends upon your family size, modified gross income, Kentucky adjusted gross income and income from selfemployment. You must file if your modified gross income exceeds the amount in Chart A and your Kentucky adjusted gross income exceeds the amount in Chart B. Kentucky Adjusted Gross Income—Consists of your federal adjusted gross income plus any additions and subtractions from Schedule M, Modifications to Federal Adjusted Gross Income. Complete your federal tax return first. If you are not required to file a federal tax return, see instructions for line 5. MODIFIED GROSS INCOME AND FAMILY SIZE (Use With Chart A) Chart B Family Size—Consists of yourself, your spouse if married and living in the same household and qualifying children. For the purposes of computing the Family Size Tax Credit, the maximum family size is four. If Your Filing Status is: Qualifying Dependent Child—Means a qualifying child as defined in Internal Revenue Code Section 152(c), and includes a child who lives in the household but cannot be claimed as a dependent if the provisions of Internal Revenue Code Section 152(e)(2) and 152(e)(4) apply. In general, to be a taxpayer’s qualifying child, a person must satisfy four tests: • Relationship—The taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these. • Residence—Has the same principal residence as the taxpayer for more than half the tax year. A qualifying child is determined without regard to the exception for children of divorced or separated parents. Other federal exceptions apply. • Age—Must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year. • Support—Did not provide more than one-half of his/her own Your Kentucky Adjusted Gross Income is greater than: Single— Under age 65.......................... and .................. $  2,980 Single— Age 65 or over or blind........... and .................. $  3,870 Single— Age 65 or over and blind........ and .................. $  4,760 Taxpayer and Spouse— Both under age 65.................. and .................. $  2,980 Taxpayer and Spouse— One age 65 or over................. and .................. $  3,870 Taxpayer and Spouse— Both age 65 or over................ and .................. $  4,760 support for the year. Modified Gross Income—Modified gross income is the greater of federal adjusted gross income adjusted to include interest income derived from municipal bonds (non-Kentucky) and lumpsum pension distributions not included in federal adjusted gross income; or Kentucky adjusted gross income adjusted to include lump-sum pension distributions not included in federal adjusted gross income. TAXPAYERS WITH SELF–EMPLOYMENT INCOME—Must file a Kentucky individual income tax return regardless of the amount of Kentucky adjusted gross income used in the Chart B if you have gross receipts from self-employment in excess of modified gross income for your family size in Chart A. Part-time or part-year workers may have income taxes withheld from their paychecks even though the filing requirements are not met. An income tax return must be filed to claim a refund of the Kentucky taxes withheld. Chart A Your Modified Gross If Your Family Size is: Income is greater than: One........................... and ..........................$14,580 Two........................... and ..........................$19,720 Three........................ and ..........................$24,860 Four or More............. and ..........................$30,000  9 TIP: Even though the filing requirements are not met, an income tax return must be filed to claim a refund of the Kentucky taxes withheld. FILING REQUIREMENTS (Continued) Taxpayers who expect refunds should file as early as possible to receive refunds promptly. If you have your tax return prepared by another person, you may wish to mail the return yourself in order to ensure prompt filing. A child meeting the filing requirements must file a return even though being claimed as a dependent by the parent. Kentucky income tax law contains no special provisions for taxing the income of a minor child at the parent’s tax rates nor the reporting of income of a child on the parent’s return. Social Security Number Generally, all income of Kentucky residents, regardless of where it was earned, is subject to Kentucky income tax. Social Security Number—You are required to provide your full Social Security number per Section 405, Title 42, of the United States Code. This information will be used to establish your identity for tax purposes only. Nonresidents and part-year residents must report income on Form 740-NP. Military Personnel—MILITARY PAY EXCLUSION—Effective for taxable years beginning on or after January 1, 2010, all military pay received by active duty members of the Armed Forces of the United States, members of reserve components of the Armed Forces of the United States, and members of the National Guard will be exempt from Kentucky income tax per KRS 141.019(l). Political Party Fund Designation You may designate $2 of your taxes to either the Democratic or Republican party if you have a tax liability of at least $2 ($4 for married persons filing joint returns). Fifty cents will be paid to the corresponding political organization in your county of residence and the remainder will be paid to the respective state political party. This designation will not increase your tax or decrease your refund. You may make this designation by checking the applicable box. A taxpayer and spouse may each make a designation. Persons making no designation should check the “No Designation” box. Soldiers will claim the exemption by excluding military pay when filing a Kentucky individual income tax return starting with the 2010 return. Provided the military member has no income other than military pay, he or she would not be required to file a Kentucky income tax return. The military pay exemption applies to all Kentucky military members regardless of where the member is stationed. Kentucky income tax should no longer be withheld from checks received for military pay, beginning January 1, 2010. If Kentucky income tax is incorrectly withheld from a soldier’s military pay, the Department of Revenue will refund the tax withheld. Reporting Periods and Accounting Procedures Kentucky residents who are in the military are often granted extensions for military service when serving outside the United States. Any extension granted for federal income tax purposes will be honored for Kentucky income tax purposes. Kentucky law requires taxpayers to report income on the same calendar or fiscal year and to use the same methods of accounting as required for federal income tax purposes. Any federally approved change in accounting period or methods must be reported to the Kentucky Department of Revenue. Enclose a copy of the federal approval. For Fiscal Year Filers Only—Most people pay taxes for a calendar year. However, if you file for a taxable year other than a calendar year or for part of a year, enter the beginning and ending dates of that year on the line at the top of the form. Changes to federal income tax law made after the Internal Revenue Code reference date contained in KRS 141.010(15) shall not apply for purposes of Chapter 141 unless adopted by the General Assembly. For Deceased Taxpayers—If a taxpayer died before filing a return for 2023, the person who files the return should check the applicable deceased box. When and Where to File The income tax return for calendar year 2023 must be postmarked or submitted electronically no later than April 15, 2024, to avoid penalties and interest. Mail to: Refund/Other Returns Filing Status APRIL 2024 Legal liabilities are affected by the choice of filing status. Married persons who file joint or combined returns are jointly and severally liable for all income taxes due for the period covered by the return.  That is, each spouse may be held legally responsible for payment of taxes on income earned by the other. If spouses want to credit the refund of one against the liability of the other or combine their tax liabilities or refunds, they must file a combined return. If spouses want to keep their tax liabilities and/or refunds separate, each must file a separate tax form. S M T W T F S    1 7 8 14 15 21 22 28 29 2 9 16 23 30 15 3 10 17 24 4 11 18 25 5 6 12 13 19 20 26 27 Kentucky Department of Revenue Frankfort, KY 40618-0006 Pay Returns  Check the box that describes your filing status. If you are married, filed a joint federal return and both you and your spouse had income, you may be able to reduce your tax by using Filing Status 2 rather than Filing Status 3. Kentucky Department of Revenue Frankfort, KY 40619-0008 10 Filing Status 1, Single—Use this filing status if you are unmarried, divorced, widowed, legally separated by court decree, or if you filed as “Head of Household” or “Qualifying Widow(er)” on your federal return. of differences, see the Federal/Kentucky Individual Income Tax Differences chart and the line-by-line instructions. Line 6—Additions to Federal Adjusted Gross Income—Enter amount from Schedule M, Part I, line 6. Filing Status 2, Married Filing Separately on This Combined Return—Use this filing status to report your incomes individually but on only one tax form. You do this by filling in both Columns A and B. You may file separately on this combined return regardless of whether you filed jointly or separately for federal purposes if both you and your spouse had income. This filing status usually results in a lower tax than Filing Status 3. Line 8—Subtractions from Federal Adjusted Gross Income—Enter amount from Schedule M, Part II, line 17. Line 9—Kentucky Adjusted Gross Income—Subtract line 8 from line 7.  This is your Kentucky Adjusted Gross Income. Each spouse must claim his or her own income and deductions. The total of line 5, Columns A and B, must equal the combined federal adjusted gross income. Taxable Income Filing Status 3, Married Filing Joint Return—Use this filing status if you and your spouse choose to file a joint return even if one spouse had no income. Jointly means that you and your spouse add your incomes together and report in Column B. If both you and your spouse have income, it may be to your benefit to use Filing Status 2. Line 10, Deductions—Taxpayers may elect to itemize deductions or elect to use the standard deduction of $2,980. If one spouse itemizes deductions, the other must itemize. See specific instructions for Schedule A. Filing Status 4, Married Filing Separate Returns—If using this filing status, you and your spouse must file two separate tax forms. When filing separate returns, the name and Social Security number of each spouse must be entered on both returns. Enter the spouse’s Social Security number in the block provided, and enter the name on line 4. Nonitemizers, enter the standard deduction of $2,980. If married filing separately on a combined return, enter $2,980 in both Columns A and B. If filing a joint return, only one $2,980 standard deduction is allowed. Itemizers, complete Schedule A and enter allowable deductions on line 10. Line 11—Subtract line 10 from line 9. This is your Taxable Income. Adjusted Gross Income Tax Line 5, Federal Adjusted Gross Income Line 12—Determining Your Tax Enter the total amount of your federal adjusted gross income from your federal income tax return in Column B if Filing Status 1, 3 or 4 is used. Use Column A only when entering your spouse’s income on a combined return (Filing Status 2). When using Filing Status 2, Columns A and B, line 5, must equal your federal adjusted gross income. (Do not confuse federal adjusted gross income with federal taxable income shown on the federal return.) Tax Computation—Multiply line 11 by four and one-half percent (.045). Farm Income Averaging, Schedule J—If you elect farm income averaging on your federal return, you may also use this method for Kentucky. The amount of income you may average is limited to the amount elected for federal purposes. Enter tax from Schedule J, line 22, on Form 740, line 12, and check the box for “Schedule J.” Enclose completed Schedule J. Where taxpayer and spouse have filed a joint return for federal income tax purposes and have not elected to file a joint Kentucky income tax return, each spouse must claim his or her own income and deductions. Line 13, Lump-Sum Distribution—Special 10–Year Averaging—Kentucky allows a special 10-year averaging method for determining tax on lump-sum distributions received from certain retirement plans that qualify for federal 10-year averaging. If this special method is used for federal purposes, Form 4972-K, Kentucky Tax on Lump-Sum Distributions, and Schedule P, Pension Income Exclusion, must be filed with Form 740. Enter tax from Form 4972-K and check the box. If you are not required to file a federal income tax return, enter on line 5 the total of wages, salaries, tips, fees, commissions, bonuses, other payments for personal services, taxable scholarships and fellowships, taxable interest and dividends, trade or business income, unemployment compensation and all other income from sources within and without Kentucky including amounts not reported on enclosed wage and tax statements (Schedule KW-2). If you have income not supported by a wage and tax statement, enclose a supporting schedule showing the source and amount. Recycling Composting Recapture—Enter amount from Schedule RC-R and check the box. Determining Kentucky Adjusted Gross Income—Kentucky law requires that the individual income tax return begin with federal adjusted gross income and be adjusted for any differences to arrive at Kentucky adjusted gross income. Schedule M is designed to make “additions to” federal adjusted gross income and provides for “subtractions from” federal adjusted gross income. For a list Distilled Spirits Recapture—Enter amount from Schedule DS-R and check the box. Angel Investor Recapture—Enter amount of Angel investor income tax credit recapture and check the box. 11 If Form 4972-K, Schedule RC-R, Schedule DS-R and/or you had an angel investor recapture, add the amounts together and enter the total on line 13. Enter Family Size. See Schedule ITC for instructions. Enter Family Size Tax Credit decimal amount determined from Family Size Tax Credit Table. See instructions for Schedule ITC. Line 15—Enter amounts from Schedule ITC, Section A, lines 25E and 25F. See instructions for Schedule ITC. Line 23, Education Tuition Tax Credit—Complete Form 8863–K to claim this credit. See form and instructions. Line 17—Enter amounts from Schedule ITC, Section B. Line 24, Child and Dependent Care Credit—Enter in the space provided the amount of credit calculated on federal Form 2441, line 11, for child and dependent care expenses. Multiply this amount by 20 percent (.20), and enter result on line 24. NOTE: Use only if 65 or over, blind, or in Kentucky National Guard. See instructions for Schedule ITC. Line 19, Total Tax Liability—Married taxpayers filing a combined return must add the amounts on line 18, Columns A and B, and enter the sum on line 19. Other taxpayers should enter the amount from line 18, Column B, on line 19. If you do not meet the filing requirements to file a federal income tax return but would have been entitled to the federal child and dependent care credit, you may claim the child and dependent care credit for Kentucky purposes. Complete and enclose federal Form 2441, state on the form “did not meet federal filing requirements” and follow instructions for line 24. Line 20 and Line 21, Family Size Tax Credit— The Family Size Tax Credit is based on modified gross income (MGI) and the size of the family. If your total MGI is $39,900 or less, you may qualify for Kentucky Family Size Tax Credit. Line 25, RESERVED 12 Line 27, Kentucky Use Tax Important Reminder from the Department of Revenue About Out-of-State Purchases: If you made untaxed purchases from out-of-state retailers, the use tax line on your return should contain a number. Like every other state that has a sales tax, Kentucky has a use tax that requires that out-of-state purchases of tangible personal property, digital property and extended warranties for use in Kentucky be taxed at the same amount as if they had taken place in Kentucky and subjected to Kentucky’s sales tax. This ensures equality of treatment between in-state and out-of-state transactions. Although the use tax has been in the tax code since 1960, it is now more relevant than ever because of the increasing percentage of online sales. Pursuant to KRS 139.330, a 6 percent use tax is due if you make out–of–state purchases for storage, use or other consumption in Kentucky and did not pay at least 6 percent state sales tax to the seller at the time of purchase. For example, if you order from catalogs, make purchases through the Internet, or shop outside Kentucky for items such as clothing, shoes, jewelry, cleaning supplies, furniture, computer equipment, pre-written computer software, office supplies, books, souvenirs, exercise equipment or subscribe to magazines, you may owe use tax to Kentucky. It is important to remember that use tax applies only to items purchased from a retailer outside Kentucky, including another country, which would have been taxed if purchased in Kentucky. For your convenience, a Use Tax Calculation Worksheet and Optional Use Tax Table are provided below. The Optional Use Tax Table is designed for those purchases of less than $1,000. If you made untaxed out-of-state purchases in amounts under $1,000, but do not have records readily available that show the amount of those purchases, you may use the Optional Use Tax Table below to estimate the compensating use tax based on your Kentucky Adjusted Gross Income (KYAGI). All untaxed purchases in the amount of $1,000 or greater must be accounted for on an actual basis using the Use Tax Calculation Worksheet. Failure to timely report may result in assessment of penalty and interest in addition to the tax amount due.   Use Tax Calculation Worksheet Optional Use Tax Table Call 502-564-5170 for assistance. KY AGI* Tax $0 - $10,000............................. $5 $10,001 - $20,000.................. $15 $20,001 - $30,000.................. $20 $30,001 - $40,000.................. $30 $40,001 - $50,000.................. $40 $50,001 - $75,000.................. $60 $75,001 - $100,000................ $80 Above $100,000..................... Multiply AGI by 0.08% (0.0008) 1. Purchases of $0 to $1,000 x 6 percent (.06) OR Use Tax Table Amount 2. Purchases of $1,000 or more x 6 percent (.06) 3. Total Use Tax Due (add lines 1 and 2) * AGI from line 9 on KY Form 740 or KY Form 740-NP. $ $ $ Report this amount on Form 740 or 740-NP, line 27. Credit Against the Kentucky Use Tax Due You may reduce or eliminate the amount of Kentucky use tax due by the amount of state sales tax paid to the out-of-state seller on the same transaction. The reduction may not exceed the amount of Kentucky use tax due on the purchase. For example, if Georgia state sales tax of 4 percent is paid, only the additional 2 percent is due to Kentucky, or if Illinois state sales tax of 6.25 percent is paid, no additional Kentucky use tax is due. Sales tax paid to a city, county or another country cannot be used as a credit against Kentucky use tax due. Need more information about use tax?  Visit our website at: revenue.ky.gov Call or write: Kentucky Department of Revenue Attention: Use Tax P.O. Box 181, Station 53 Frankfort, KY 40602-0181 Monday—Friday 8 a.m.—5:00 p.m., ET (502) 564-5170 13 Line 33—Compare the amounts on lines 30 and 32. If line 30 is larger than line 32, subtract line 32 from line 30, enter additional tax due. This is your additional tax due before penalties and interest. Line 29, Amended returns only—Enter any overpayment received from your original return. Line 31(a), Tax Withheld—Enter the amount of Kentucky income tax withheld as shown on your Schedule KW-2. This schedule must be enclosed with your return. It is no longer necessary to submit W-2s, 1099s, and W2Gs with your return. Please retain these forms with your records and provide upon request. Penalties and Interest Line 34(a), Estimated Tax Penalty—If the amount owed is more than $500, you may be subject to a penalty for underpayment of estimated tax. You will not be given credit for Kentucky income tax withheld unless you enclose the Schedule KW-2. The amount of the penalty may be calculated on Form 2210–K. Form 2210–K may also be used by qualifying farmers and others to claim exemption to the penalty. If paying the penalty or claiming an exemption, complete Form 2210–K, enclose with your return and check the box beside line 34(a). Enter the amount of the penalty on line 34(a). Employers are required to give these wage and tax statements to employees no later than January 31, 2024. If by March 1 you are unable to obtain a wage and tax statement from an employer, contact the Department of Revenue for instructions. You may not claim credit for tax withheld by another state. Within certain limitations, Kentucky residents may claim a credit for nonrefundable individual income tax paid to other states. See Schedule ITC, Section A, line 6. If your return is filed after April 15, 2024, or any tax due on the return is paid after April 15, 2024, you may be subject to additional penalties and interest. Local government occupational, license or income tax must not be included on line 31(a). Line 34(b),  Interest—Interest will be assessed at the “tax interest rate” from the original due date of the return until the date of payment. Line 31(b), Estimated Tax/Extension Payments Paid—Enter Kentucky estimated tax payments made for 2023 and amounts credited from the 2022 return. Line 34(c), Late Payment Penalty—If the amount of tax due as shown on line 33 is not paid by the original due date of the return, a penalty of 2 percent of the tax computed due may be assessed for each 30 days or fraction thereof that the tax is past due, not to exceed 20 percent. The minimum penalty is $10. However, if the amount timely paid is 75 percent of the tax determined due by the Department of Revenue, no late payment penalty will be assessed. Also, include on line 31(b) payments prepaid with extension requests. Identify as “prepaid with extension.” Line 31(c), Refundable Certified Rehabilitation Credit— Enter 2023 approved refundable certified rehabilitation credit per KRS 141.382(1)(b). Line 34(d),  Late Filing Penalty—If a return is not filed by the due date or the extended due date, a penalty of 2 percent of the total tax due for each 30 days or fraction thereof that a return is not filed may be assessed, not to exceed 20 percent. The minimum penalty is $10. Line 31(d), Refundable Entertainment Incentive Tax Credit—Enter 2023 approved refundable entertainment incentive tax credit per KRS 141.383(2)(b)(3). Line 31(e), Refundable Development Area Tax Credit—Enter 2023 approved refundable development area tax credit per KRS 141.398(2). If you have “residential property” located in the West End Development area located in Louisville, Kentucky you may be entitled to a development area tax credit. To qualify for the credit, it must be your principal place of residence, located within the West End development area and owned as of January 1, 2021. Your credit will be equal to the amount in which the property tax timely paid on the residential property exceeds the amount of property tax assessed on that residential property on January 1, 2021. KRS 141.398. Note: Penalties but not interest may be reduced or waived if reasonable cause for reduction or waiver can be shown. Line 35, Total of amounts on lines 34(a) through 34(d). Line 36,  Amount You Owe—If the total of lines 30 and 35 is more than line 32, subtract line 32 from the total of lines 30 and 35. When filing the return, you must pay any tax due shown on line 36. Line 31(f), Refundable Decontamination Credit—Enter 2023 approved refundable decontamination credit per KRS 141.419(2). Your 2023 individual income tax may be paid using any of the following options: Line 31(g), Refundable Pass-Through Entity Credit—Enter the amount of pass-through entity tax credit from form PTET‑CR, line 9. • Form EPAY (42A740-EPAY), if supported by your software vendor, may be used to make an electronic payment of tax due separately from filing your tax return. Refer to the Form EPAY (42A740-EPAY) instructions for additional information. Line 31(h),  Amended Returns—Enter amount paid with original return plus additional payment(s) made after it was filed. • Form 8879-K, for use when simultaneously making an electronic payment and filing your return. Line 32—Total of amounts on lines 31(a) through 31(h). • Pay by Credit Card or ACH Debit through April 15, 2024. Kentucky accepts MasterCard, VISA, Discover, or American Express. Access the Department of Revenue’s secure website (revenue.ky.gov) to make electronic payments. 14 Line 38(b), Child Victims’ Trust Fund (CVTF)—Contributions to this fund finance regional and statewide prevention programs which utilize innovative strategies to provide children with personal safety skills, teach adults how to keep children safe from child sexual abuse and exploitation, and inform the public about mandatory reporting of suspected child abuse. The CVTF also provides partial reimbursement for child sexual abuse medical exams at Children’s Advocacy Centers across the Commonwealth. This fund is administered through the Attorney General’s office and relies on tax-deductible contributions and private donations. Contributions may be made directly to the Child Victims’ Trust Fund, Office of Child Abuse and Human Trafficking Prevention and Prosecution, 1024 Capital Center Drive, Suite 200, Frankfort, KY 40601, or by visiting https://icareaboutkids.ky.gov. For more information call (502) 696-5312. • Pay by check using Form 740–V if you filed your return electronically. Make check payable to Kentucky State Treasurer, write “KY Income Tax–2023” and your Social Security number on the face of the check. Enclose the check and Form 740–V in the same envelope. Actual withdrawal of electronic payments may be later than requested date. Please allow up to two weeks for processing. If you need assistance with payment options, you may call the Department of Revenue at (502) 564-4581. Note: If you cannot pay your tax in full, file your return and pay as much as possible by April 15. Contact the Department of Revenue for additional payment information. Line 37, Amount Overpaid—If you have an overpayment on line 37 you may have all of this amount refunded to you. You also may contribute all or part of it to the Nature and Wildlife Fund, the Child Victims’ Trust Fund, the Veterans’ Program Trust Fund, the Breast Cancer Research and Education Trust Fund, the Farms to Food Banks Trust Fund, Local History Trust Fund, Special Olympics Kentucky, Pediatric Cancer Research Trust Fund, Rape Crisis Center Trust Fund, Court Appointed Special Advocate Trust Fund, YMCA Youth Association Fund, and/or credit all or part of it toward your 2024 estimated tax. Line 38(c), Veterans’ Program Trust Fund—Contributions to this fund are administered by a Board of Directors. The Trust Fund is used to provide services to veterans that are not already resourced by state law or federal appropriation. In an effort to recognize the service and sacrifice of Kentucky’s deserving veterans, the fund supports programs that provide direct benefits to Kentucky veterans, programs such as shelters for homeless men and women veterans, therapy programs including those providing service dogs, equine therapy, and other specialized therapy programs designed to assist veterans suffering from Post-Traumatic Stress Disorder. Contributions may also be made directly to the Kentucky Veterans’ Program Trust Fund, 1111B Louisville Road, Frankfort, KY 40601. Voluntary Refund Contributions Donations to the following funds are voluntary and amounts donated will reduce your refund. You may contribute all or a portion of your overpayment to one or more of the following funds. Enter the amount you wish to contribute on the appropriate lines. Line 38(d), Breast Cancer Research and Education Trust Fund— Contributions will be used to fund breast cancer research, education, awareness, treatment and screening.  Additional information may be obtained from the Division of Women’s Health, (5 02) 5 6 4 - 323 6 or at https://chfs.ky.gov/agencies/dph/dwh/Pages/ default.aspx. Contributions may also be made directly to the state Department for Public Health, Division of Administration and Financial Management, 275 East Main Street, HS1GWA, Frankfort, KY 40621, (502) 564-6663. Line 38(a), Nature and Wildlife Fund—Contributions will purchase and protect Kentucky’s finest natural areas as state nature preserves and for nongame species protection. The Kentucky Department of Fish and Wildlife Resources and the Kentucky Nature Preserves work together to protect Kentucky’s rare plants and animals; and acquire the most naturally outstanding forests, wetlands and prairies in order to provide a home for Kentucky’s unique and d i v e r s e w i l d l i f e . Yo u r t a x d e d u c t i b l e contributions play a critical role in protecting the wildlands that make Kentucky famous. Contributions may also be made directly to the Nature and Wildlife Fund, c/o the Office of Kentucky Nature Preserves, or c/o the Kentucky Department of Fish and Wildlife Resources, 300 Sower Blvd., 4th Floor, Frankfort, KY 40601. Line 38(e), Farms to Food Banks Trust Fund—Contributions to this fund are used to offset farmers’ costs for providing Kentucky grown and raised surplus agricultural commodities to food banks. Cash flow for farmers is strengthened while access to healthy food among struggling Kentuckians is increased. This fund is administered by the Kentucky Department of Agriculture. Contributions can also be made directly to the Farms to Food Banks Trust Fund, c/o the Kentucky Department of Agriculture, 111 Corporate Drive, Frankfort, KY 40601, (502) 573-0282. Help keep the Bluegrass state green! Kentucky Department of Fish and Wildlife Resources: http://www.fw.ky.gov Kentucky Nature Preserves: https://eec.ky.gov/Nature-Preserves/ 15 Line 38(j), Court Appointed Special Advocate Trust Fund— Contributions to this fund are used to support and strengthen the local Court Appointed Special Advocate (CASA) programs in Kentucky, where more than 1,100 trained volunteers advocate for the best interests of abused and neglected children. The trust fund is used to expand capacity of local CASA programs that train and recruit Kentucky’s citizens who will advocate for abused and neglected children involved in Kentucky’s court system. Contributions may also be made directly to Kentucky CASA Network, 1640 Lyndon Farm Court, Suite 108, Louisville, KY 40223. Help support Kentucky’s most vulnerable children. For more information about the KCN, call (502) 238-2154 or visit www.kentuckycasanetwork.org Line 38(f), Local History Trust Fund—Contributions to this fund support grants for local history organizations— museums, historical societies, genealogical societies, and more—that help preserve their communities’ history as well as share their role in Kentucky’s development and the lasting impact they have made on our commonwealth and nation. The fund is administered through the Kentucky Historical Society. Contributions may also be made directly to the Local History Trust Fund, Kentucky Historical Society, 100 W. Broadway, Frankfort, KY 40601. Line 38(g), Special Olympics Kentucky—Contributions will help Special Olympics Kentucky provide confidence and self-esteem building sports programs for more than 10,000 athletes with intellectual disabilities in Kentucky. They will also help Special Olympics Kentucky provide more than 1,000 free medical screenings through our Healthy Athletes Program and give small children with intellectual disabilities a head start through our Young Athletes program. Contributions will also support our school-based programs that help build bridges and foster understanding between students with intellectual disabilities and their peers. Contributions can also be made directly to Special Olympics Kentucky, 105 Lakeview Ct., Frankfort, KY 40601. Line 38(k), Kentucky YMCA Youth Association Fund— Kentucky YMCA Youth Association is the largest Youth and Government program provider in the nation. 100% of contributions will go directly to provide scholarships to Kentucky schools and students attending the Kentucky Youth Assembly (KYA): an in-depth experiential learning program in which middle and high school students participate as state officials in simulated state-level legislative, advocacy, and courtroom proceedings. As a completely student-led and run program, KYA participants experience first-hand the workings of all branches of state government, and leave with increased knowledge, skills, and confidence to be active and effective participants in their communities. Contributions may be made directly to the Kentucky YMCA Youth Association, 91 C. Michael Davenport Blvd. Frankfort, KY 40601 or at www.kyymca.org/give. Help Special Olympics Kentucky Change Lives! Line 39, Total of amounts on lines 38(a) through 38(k). Special Olympics Kentucky http://www.soky.org Line 40, Estimated Tax—You may credit all or part of the overpayment toward your estimated tax liability for 2024. Enter the amount you want credited on line 40. Credit forwards are not available on amended returns. Line 38(h), Pediatric Cancer Research Trust Fund— Contributions will be used to fund pediatric cancer research and treatment for Kentucky patients. Additional information may be obtained from the Division of Prevention and Quality Improvement, (502) 564-7996 or at http://chfs. ky.gov/dph/info/dpqi/cd. Contributions may also be made directly to the Pediatric Cancer Research Trust Fund, Department for Public Health, Division of Prevention and Quality Improvement, Chronic Disease Prevention Branch, 275 East Main Street, HS2WE, Frankfort, KY 40621. Line 41, Refund—Subtract amounts entered on lines 39 and 40 from line 37. Enter the difference, if any, on line 41. This amount will be refunded to you. If the total of lines 39 and 40 equals the amount on line 37, enter a zero on line 41. COPY OF FEDERAL RETURN You must enclose a complete copy of your federal return if you received farm, business, or rental income or loss. Check the box on Form 740, page 3 if you are not required to enclose a copy of your federal return. Line 38(i), Rape Crisis Center Trust Fund—Contributions to this fund are used to provide direct services to Kentucky citizens who have experienced sexual violence, sexual assault, or rape at any time in their lifetime as well as serving their family and friends. It is also used to provide programs to prevent perpetration of sexual assault against Kentucky’s youth. Services and programs are provided by Kentucky’s 13 regional rape crisis centers designated by the Cabinet for Health and Family Services, Department for Community Based Services. Contributions can also be made directly to Kentucky Association of Sexual Assault Programs (KASAP), P. O. Box 4028, Frankfort, KY 40604, (502) 564-9433. Additional information on how to access services or programs can be viewed at www.kasap.org SIGN RETURN Be sure to sign on page 3 after completion of your return. Each return must be signed by the taxpayer. Joint and combined returns must be signed by both taxpayer and spouse. Returns that are not signed may be returned to you for signature. Enter Driver’s License/State issued ID number. Enter a daytime telephone number where you can be reached. You may be contacted for additional information. Check the box if you will allow the Department of Revenue to discuss your return information with your preparer. 16 This page has been intentionally left blank. 17 This page has been intentionally left blank. 18 Instructions for Schedule ITC   6.   7.   8. You must file Schedule ITC if you have: • • • nonrefundable business incentive credits Personal tax credits (65 or over, blind or in Kentucky National Guard) qualifying dependent children and are claiming the Family Size tax credit. SECTION A—BUSINESS INCENTIVE AND OTHER TAX CREDITS Line 1, Nonrefundable Limited Liability Entity Tax Credit (KRS 141.0401(2)) Line 2, Kentucky Small Business Tax Credit—For taxable years beginning after
Extracted from PDF file 2023-kentucky-income-tax-instructions.pdf, last modified November 2023

More about the Kentucky Income Tax Instructions Individual Income Tax TY 2023

This free booklet contains instructions on how to fill out and file your Income Tax Form 740, for general individual income taxes.

We last updated the Form 740 Individual Full Year Resident Income Tax Instructions Packet in January 2024, so this is the latest version of Income Tax Instructions, fully updated for tax year 2023. You can download or print current or past-year PDFs of Income Tax Instructions directly from TaxFormFinder. You can print other Kentucky tax forms here.


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Other Kentucky Individual Income Tax Forms:

TaxFormFinder has an additional 129 Kentucky income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form 740 Kentucky Individual Income Tax Return
Income Tax Instructions Form 740 Individual Full Year Resident Income Tax Instructions Packet
Schedule KW-2 Kentucky Income Tax Withheld
Schedule M (740) Kentucky Federal Adjusted Gross Income Modifications
Form 740-NP Kentucky Individual Income Tax Return Nonresident or Part-Year Resident

Download all KY tax forms View all 130 Kentucky Income Tax Forms


Form Sources:

Kentucky usually releases forms for the current tax year between January and April. We last updated Kentucky Income Tax Instructions from the Department of Revenue in January 2024.

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About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Kentucky Income Tax Instructions

We have a total of eight past-year versions of Income Tax Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:



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