Kentucky Income Tax Forms and Kentucky Income Tax Rate Info

By | December 21, 2015

Kentucky Income Tax E-File Information


Who must file Kentucky Income Tax Returns?

The filing requirements of full-year or part-year residents is based on your family size, modified gross income, Kentucky adjusted gross income and income from self- employment. You must file if your modified gross income exceeds $11,670 for family size 1; $15,730 for family size 2; $19,790 for family size 3 and $23,850 for family size of 4 or more. If modified gross income is greater than those amounts and your Kentucky Adjusted Gross Income exceeds $3,360 see the instructions for forms 740 & 740-NP for additional information. Taxpayers with income from self-employment must file if income is in excess of the above modified gross income thresholds based on family size of 1, 2, 3 or 4 or more.


What are the Kentucky income tax forms?

Full year residents: Form 740 or 740EZ. Use Schedule M to make KY adjustments to income. Part year and nonresidents: 740NP.

Qualify as a KY resident if resided in the state for entire tax year. Military personnel on active duty who entered service as KY residents remain so unless and until they take steps to establish residency elsewhere. Personnel who change residency into or from KY during the tax year must file return as a part-year resident (Form 740-NP).


What are Kentucky income tax deductions, Kentucky income exclusions, and Kentucky income tax exemptions?

Taxpayers may itemize on KY return, even if they did not on Federal return. The 2014 standard deduction is $2,400 for all filers. If one spouse itemizes, so must the other. If filing a joint return, only one $2,400 deduction is authorized. An above the line deduction is authorized for overnight transportation, meals, and lodging expenses of National Guard and Reserve members who must travel away from home more than 100 miles and who must stay overnight to attend National Guard and Reserve meetings.


Kentucky Income Tax Deductions

For tax year 2014, the limitation on itemized deductions threshold is $181,150 ($90,575 if married filing separate returns). If your Kentucky adjusted gross income is above this threshold, your itemized deductions (excluding medical and dental, investment interest, losses for casualty or theft and gambling losses) will be limited. In general, if the limitation applies, itemized deductions are reduced by the lesser of: 3% of the adjusted gross income that exceeds the threshold or 80% of the allowable itemized deductions. A worksheet has been included with the Schedule A to help determine the amount of deductions you are allowed to take if you exceed the threshold.

Taxpayers may exclude social security income, disability retirement income, interest from U.S. Government bonds and securities, and premiums for long-term care and health insurance. The exclusion for health care premiums does not include expenses for plans paid with pre-tax dollars. Military members may exclude all income from all sources for active duty and reserve members and officers of the Armed Forces of the United States or National Guard who are killed in the line of duty, for the year during which the death occurred and the year prior to the year during which the death occurred. For the purposes of this paragraph, all income from all sources shall include all federal and state death benefits payable to the estate or any beneficiaries. See Form 740 instruction booklet for more details: 740 Packet – Kentucky Individual Tax Booklet, Forms and Instructions, Schedule M.

Starting with the 2010 return, service members will claim the exemption by excluding military pay when filing a Kentucky individual income tax return. If 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 Jan. 1, 2010. If Kentucky income tax is incorrectly withheld from military pay in 2010, and after, the Department of Revenue will refund the tax withheld.

May exclude up to $41,110 of retirement income, including military retired pay, if retired after Dec. 31, 1997. If retired before Jan. 1, 1998, military pension is completely exempt. Schedule P required to declare fully exempt pension amounts, including military retired pay, and to declare retirement income in excess of $41,110 for post-31 Dec 1997 retirements.


What are Kentucky capital gains tax?

Taxed as ordinary income. KY excludes from income gain on sale of KY Turnpike bonds and gain on property taken by eminent domain.


What is the Kentucky income tax deadline?

Due April 18, 2015.

Taxpayers who are unable to file a return by April 15 may request an extension. The request for the extension must be submitted in writing 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.

For electronic and credit card payment options, on main KY DOR website

What is Kentucky Use Tax?

6 percent (6%) use tax may be 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, 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 outside Kentucky, including another country, which would have been taxed if purchased in Kentucky.

In addition to the use tax line on the sales and use tax returns (Forms 51A102 and 51A103, line 23a) and the consumer’s use tax return (Form 51A113) for businesses, other options exist for individuals to report their use tax, such as:

1. Consumer Use Tax Return – Form 51A113(O) (9K), may be filed during the year each time you make taxable purchases; or

2. You can report and pay use tax on an annual basis at the same time you file your Kentucky individual income tax return.

3. Collection of use tax is required by county clerks on tangible personal property purchased out-of-state and offered for titling or first-time registration in Kentucky.

Credit Against the Kentucky Use Tax Due – You may reduce or eliminate the amount of Kentucky use tax due by the amount of a different state sales tax paid on the same property to the out-of-state seller. 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 country cannot be used as a credit against the Kentucky use tax due.


Kentucky Income Tax Contact Info

Kentucky Department of Revenue
Taxpayer Assistance
501 High Street
Frankfort, KY 40620


Kentucky Income Tax Contact Information

General Information: (502) 564-4581

Forms: (502) 564-4581 or via web

Web site: KY Department of Revenue              Forms

IRS Processing Center: KANSAS CITY, MO  (if no payment enclosed);  ST. LOUIS, MO (if enclosing payment)

Refund Status: (502) 564-1600 or

E-Filing Help Desk:     (502) 564-5370 [NOTE: This number for tax officers only]