Kentucky Form 740 Individual Full Year Resident Income Tax Instructions Packet

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.

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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.

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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.

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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.

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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.

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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

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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.

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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