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Kentucky Estimated Income Tax Instructions
Extracted from PDF file 2024-kentucky-740-es-instructions.pdf, last modified June 2023Estimated Income Tax Instructions
42A740-S4 (9-23) Commonwealth of Kentucky DEPARTMENT OF REVENUE INSTRUCTIONS FOR FILING ESTIMATED TAX VOUCHERS 2024 WHAT’S NEW FOR 2024—The standard deduction will increase to $2,980.00 for 2024. Individuals, estates, or trusts who electronically file their return will now have the option to have their estimated tax payment(s) debited from their bank account. 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. WHO MUST MAKE PAYMENTS—Individuals, estates, or trusts 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 as required by KRS 141.305. Payments may be made through withholding, a credit forward from the previous year’s income tax return or estimated tax payments. The worksheet on the reverse should be used to determine the amount which should be paid through estimated tax payments. If the amount of estimated tax for the year is $500 or less, no payment is required. Note: This credit is not applicable to fiduciary returns. “Modified gross income” used to calculate the Family Size Tax Credit means the greater of: Federal adjusted gross income adjusted to include interest income derived from municipal bonds (non-Kentucky) and lump-sum pension distributions not included in federal adjusted gross income; General Rule Kentucky adjusted gross income adjusted to include lump‑sum pension distributions not included in federal adjusted gross income. In most cases, you must pay estimated tax for 2024 if both of the following apply. 1 You expect to owe at least $500 in tax for 2024, after subtracting your withholding and refundable credits. 2 You expect your withholding and refundable credits to be less than the smaller of: (a) 90% of the tax to be shown on your 2024 tax return; or (b) 100% of the tax shown on your 2023 tax return. Your 2023 tax return must cover all 12 months. Note: These percentages may be different if you are a farmer, fisherman, or higher income taxpayer. See Special Rules. EXCEPTION—You don’t have to pay estimated tax payments for 2024 if you had no Kentucky tax liability for the full 12-month 2023 tax year. You had no liability for 2023 if your total tax was zero or you didn’t have to file a Kentucky tax return. SPECIAL RULES There are special rules for farmers, fisherman, and certain higher income taxpayers. FARMERS AND FISHERMAN—If at least two-thirds of your gross income for 2023 or 2024 is from farming, substitute 66 2/3% for 90% in (2a) under General Rule. HIGHER INCOME TAXPAYERS—If your Kentucky adjusted gross income for 2023 was more than $150,000 ($75,000 if your filing status for 2024 is married filing separately), substitute 110% for 100% in (2b) under General Rule. This rule does not apply to farmers. or PASS-THROUGH ENTITIES AND INDIVIDUAL OWNERS OF DISREGARDED SINGLE MEMBER LLCs—All pass-through entities and individual owners of disregarded single member LLCs that file on Schedules C, E or F for federal income tax purposes are treated the same for Kentucky income tax purposes as they are treated for federal income tax purposes except for the differences between Kentucky law and federal law. Individuals with income from pass-through entities or disregarded single member LLCs that file Schedule C, E or F for federal income tax purposes may be required to make individual estimated tax payments. WHEN TO PAY—Taxpayers may pay the full amount of estimated tax in one payment on the earliest applicable due date, or they may pay in installments. Installments for calendar year 2024 are due April 15, June 17, September 16, 2024, and January 15, 2025. Any credit from a 2022 income tax return should be applied to the amount owed before any payments are made. Installment payments should not be made until the amount of the credit has been used. A voucher should be filed only when a payment is required. FARMERS AND FISHERMAN—If at least two-thirds of your gross income for 2023 or 2024 is from farming or fishing, you can do one of the following: • Pay all of your estimated tax by January 15, 2025. • File your 2024 Form 740 or Form 740–NP by March 1, 2025, and pay the total tax due. In this case, 2024 estimated tax payments aren’t required to avoid a penalty. Page 1 of 3 Page 2 of 3 ANNUALIZED INCOME INSTALLMENTS—If you receive your income unevenly throughout the year (for example, because you operate your business on a seasonal basis or you have a large capital gain late in the year), you may be able to lower or eliminate the amount of your required estimated tax payment for one or more periods by using the annualized income installments method. See chapter 2 of federal publication 505 for details. Period When Estimate Required or Change Occurs Due Date Number of Equal Installments January 1–April 1 April 15, 2024 4 April 2–June 1 June 17, 2024 3 June 2–September 1 September 16, 2024 2 September 2–December 31* January 15, 2025 1 PENALTY FOR UNTIMELY ESTIMATED PAYMENT—Failure to pay estimated tax installments on or before the due date will result in assessment of penalty on the late payment. This penalty will be calculated using the rate provided by KRS 131.183. HOW TO USE ESTIMATED TAX VOUCHERS—Enter your name, address and Social Security number(s)/FEIN in the spaces provided. In the payment block, enter the amount of payment. Do not enter amounts paid through a credit from a previous year. HOW TO PAY—You may pay your estimated tax installments using the following options: • Pay by check using Form 740-ES. Make check payable to Kentucky State Treasurer, and write your Social Security Number on the face of the check. If you chose to pay your first installment with Form 740, please prepare a separate check for the amount shown on the Form 740-ES voucher and include the voucher marked "Installment 1". • Form 8879-K, you may authorize the Kentucky Department of Revenue to debit all four of your installments on the dates due. This option must be initiated at the time of the filing and is only available for electronic filers. • Pay by ACH debit, you may access the Department of Revenue's secure website revenue.ky.gov . *If the change occurs after September 2, 2024, the voucher is not required if the 2024 Kentucky income tax return is filed and the tax shown to be due is paid on or before January 31, 2025. Failure to make required estimated installments by the specified dates may result in penalty due. FISCAL YEAR FILERS—If you pay tax for a fiscal year instead of a calendar year, your due date is the 15th day of the fourth, sixth and ninth months of your fiscal year and the 15th day of the first month of the following fiscal year. Estimated Tax Worksheet (2024) 1 Enter your total estimated wages subject to withholding......................................................................... 1 2 Enter your total estimated taxable income from sources with no withholding.......................................... 2 3 Add lines 1 and 2..................................................................................................................................... 3 4 Enter estimated adjustments to income................................................................................................... 4 5 Subtract line 4 from line 3. This is your ESTIMATED ADJUSTED GROSS INCOME.............................. 5 6 Enter estimated allowable itemized deductions or the standard deduction of $2,980.00 (Enter zero for estates or trusts)........................................................................................................................ 6 7 Subtract line 6 from line 5. Enter the difference here. This is your ESTIMATED NET INCOME.............. 7 8 Compute tax on estimated net income from line 7. Multiply line 7 by 4% and ENTER TAX HERE............................................................................................................................ 8 9 Enter your tax credits ($40 if you are 65 or over or blind; $20 if you are in the Kentucky National Guard)........................................................................ 9 10 Enter Family Size Tax Credit using percentage from worksheet below (Enter zero for estates or trusts)........................................................................ 10 11 Enter Kentucky income tax to be withheld in 2024. Add lines 9 through 11 and enter total at right.................................................................................... 11 12 Subtract the total on line 11 from line 8. This is your Estimated Kentucky Income Tax for 2024. Enter here. If this amount is $500 or less, estimated tax payment is not required........... 12 13(a) Multiply line 12 by 90% (66 2/3 % for farmers and fishermen, see instructions)................................................................................................. 13a (b) Enter amount of tax liability from 2023 return (see 2(b) of General Rule) (Multiply by 110% for high income taxpayers, see instructions)......................... 13b (c) Required annual payment. Enter the smaller of line 13(a) or 13(b)................... 13c 14 Divide line 13(c) by 4. This is amount of each installment. Enter here and in Column B, lines 1 through 4 of Record of Estimated Tax Payments Schedule.......................................................... 14 Page 3 of 3 Family Size Tax Credit (FSTC) is based on modified gross income (MGI) and the size of the family. Refer to page 1 for the definition of MGI. The 2023 table is provided for your convenience. Note: This credit is not applicable to fiduciary returns. Family Size If MGI . . . Tax Year 2023 is over One Two is not over is over Three is not over is over Four or More is not over is over is not over Credit Percentage is $ --- $ 14,580 $ --- $19,720 $ --- $24,860 $ --- $30,000 100 14,580 15,163 19,720 20,509 24,860 25,854 30,000 31,200 90 15,163 15,746 20,509 21,298 25,854 26,849 31,200 32,400 80 15,746 16,330 21,298 22,086 26,849 27,843 32,400 33,600 70 16,330 16,913 22,086 22,875 27,843 28,838 33,600 34,800 60 16,913 17,496 22,875 23,664 28,838 29,832 34,800 36,000 50 17,496 18,079 23,664 24,453 29,832 30,826 36,000 37,200 40 18,079 18,517 24,453 25,044 30,826 31,572 37,200 38,100 30 18,517 18,954 25,044 25,636 31,572 32,318 38,100 39,000 20 18,954 19,391 25,636 26,228 32,318 33,064 39,000 39,900 10 19,391 --- 26,228 --- 33,064 --- 39,900 --- 0 These two schedules are for your records only and are not to be mailed to the Department of Revenue. AMENDED COMPUTATION SCHEDULE Use if your estimated tax substantially changes after you make your first payment. 1 Enter amended estimated tax.................. 2 Less: (a) Amount of 2023 overpayment credited to 2024 estimated tax........... (b) Payments made on 2024 estimated tax to date.......................... (c) Total of Lines 2(a) and 2(b)................. 3 Unpaid balance (line 1 less line 2(c))....... 4 Amount to be paid (line 3 divided by number of remaining installments less any unused 2023 overpayment credit). Enter here and in block on voucher.................................................... RECORD OF ESTIMATED TAX PAYMENTS SCHEDULE Col. A Voucher Number Date 1 2 3 4 Total Col. B Col. C Amount from line 14 above. 2023 overpayment credit applied to installment. Subtract C from B. Col. D Amount to be paid with voucher. Enter here and on Vouchers 1-4.* *If zero or less, do not file a voucher. If amount credited exceeds amount of installment enter excess in Column C of the next line.
740-ES Instructions
More about the Kentucky 740-ES Instructions Individual Income Tax Estimated TY 2024
We last updated the Estimated Income Tax Instructions in March 2024, so this is the latest version of 740-ES Instructions, fully updated for tax year 2023. You can download or print current or past-year PDFs of 740-ES Instructions directly from TaxFormFinder. You can print other Kentucky tax forms here.
Related Kentucky Individual Income Tax Forms:
TaxFormFinder has an additional 129 Kentucky income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Kentucky 740-ES Instructions.
| Form Code | Form Name |
|---|---|
| Form 740-ES | Estimated Income Tax Return |
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 740-ES Instructions from the Department of Revenue in March 2024.
740-ES Instructions is a Kentucky Individual Income Tax form. While most taxpayers have income taxes automatically withheld every pay period by their employer, taxpayers who earn money that is not subject to withholding (such as self employed income, investment returns, etc) are often required to make estimated tax payments on a quarterly basis. Failure to make correct estimated payments can result in interest or penalties.
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 740-ES Instructions
We have a total of five past-year versions of 740-ES 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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