Kentucky Kentucky Beneficiary's Share of Income, Deductions, Credits, Etc.

Kentucky Beneficiary's Share of Income, Deductions, Credits, Etc.
Form 741(K-1)
FORM

741

KENTUCKY BENEFICIARY’S SHARE
OF INCOME, DEDUCTIONS, CREDITS, ETC.

SCHEDULE (K-1)
Commonwealth of Kentucky
Department of Revenue

2023

For calendar year or fiscal year beginning _____________________ , 2023, and ending _____________________ , 20____.

   Amended K-1
    Final K-1

Name of estate or trust  
Beneficiary’s identifying number  	
(One beneficiary per K-1)	

Estate or trust’s federal
employer identification number  

Beneficiary’s name, address and ZIP code	

Fiduciary’s name, address and ZIP code

Check Beneficiary Class (Estates only):
  Class A  
 Class B    Class C  

	

(A)  Allocable Share Item	

(B)  Federal Amount	

(C)  Difference	

 
  1	 Interest..............................................................................	1
  2	 Dividends..........................................................................	 2
  3	 Net short-term capital gain................................................	 3
  4	 Net long-term capital gain.................................................	4
  5	 (a)	 Annuities, royalties and other nonpassive
		
income before directly apportioned
		
deductions (see federal instructions)........................	5a
	
(b)	 Depreciation..............................................................	 5b
	
(c)	 Depletion...................................................................	5c
	
(d)	 Amortization..............................................................	5d
  6	 (a)	 Trade or business, rental real estate and other
		
rental income before directly apportioned
		
deductions (see federal instructions)........................	6a
	
(b)	 Depreciation..............................................................	 6b
	
(c)	 Depletion...................................................................	6c
	
(d)	 Amortization..............................................................	6d
  7	 Federal estate tax deduction (enclose computation).......	7
  8	 Foreign taxes (enclose schedule)....................................	8
  9	 Deductions in the final year of estate or trust:
	
(a)	 Excess deductions on termination (enclose
		 computation)................................................................	9a
	
(b)	Short-term capital loss carryover.................................	 9b
	
(c)	Long-term capital loss carryover..................................	9c
	
(d)	Net operating loss (NOL) carryover.............................	9d
	
(e)				 9e
	
(f)				 9f
10	 Other: (itemize)
	
(a)			 10a
	
(b)			 10b
	
(c)			 10c
Resident Adjustment
11	 Add lines 1 through 6 and portions of lines 9 and 10 in column (c). Add income
	
amounts and subtract (loss) and deduction amounts (see instructions).
	
Enter on Form 740, Schedule M, line 2, if difference is positive, or
	
line 11, if difference is negative (see instructions)................................................... 	11
PASS-THROUGH CREDIT
12	 (a)	 Limited liability entity tax credit.................................................................................................................. 	 12a
	
(b)	 Nonresident Withholding from Form PTE-WH and/or Pass-through Entity tax credit not included on
		
Form 741, line 20(c).................................................................................................................................. 	 12b

230033 42A741(K-1) (10-23)	

(D)  Kentucky Amount

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INSTRUCTIONS TO BENEFICIARY

SCHEDULE K-1
Form 741 (2023)

SCHEDULE K-1 (FORM 741)

Who Must File—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 self-employment.
Family Size—Consists of yourself, your spouse if married and
living in the same household and qualifying children.
Qualifying Child—Means a qualifying child as defined in Internal
Revenue Code Section 152(c).
Modified Gross Income—Consists of your federal adjusted
gross income, your spouse’s federal adjusted gross income if
living in the same household, plus any tax-exempt interest from
municipal bonds (non-Kentucky) or any lump-sum distribution
amount taxed on Form 4972-K.
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.
Resident beneficiaries use Charts A and B below to determine
if you need to file a Kentucky return. Nonresidents use Chart
A only.

Chart A
		
	

Your Modified Gross
Income is greater than:

If Your Family Size is:	

	 One...............................	
	Two...............................	
	 Three............................	
	 Four or More.................	

and	 . ........................... 	$ 14,580	
and	 . ........................... 	$ 19,720	
and	 . ........................... 	$ 24,860	
and	 . ........................... 	$ 30,000

	

Chart B

	

	
		
	 If your Filing Status is:	

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

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.
42A741(K-1) (10-23)	

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Generally, all income of Kentucky residents, regardless of where
it was earned, is subject to Kentucky income tax.
Nonresidents and Part-year Residents—Nonresidents with
income from Kentucky sources and part-year residents receiving
income while a Kentucky resident or from Kentucky sources
while a nonresident must file a Kentucky Form 740-NP based
on the above criteria. Persons moving into Kentucky must report
all income received from Kentucky sources prior to becoming
residents and income received from all sources after becoming
Kentucky residents. Residents moving out of Kentucky during
the year must report income from all sources while a resident
and from Kentucky sources while a nonresident.
Note: Nonresidents and part-year residents are entitled to the
family size tax credit.
When to Report—Include your share of the estate or trust’s
income, deductions, credit, etc., as shown by your Schedule K-1
(Form 741) on your Kentucky income tax return for the year in
which the tax year of the estate or trust ends. For example, if you,
the beneficiary, are on a calendar year, and the estate or trust’s
tax year ends January 31, 2023, you must take the items listed
on Schedule K-1 (Form 741) into account on your tax return for
calendar year 2023.
Passive Activity Limitations—Form 740 filers see Form 8582-K
and instructions for passive activity loss adjustments. Nonresident
beneficiaries (740-NP filers) must complete Form 8582-K and
federal Schedule E with Kentucky amounts.
Kentucky Resident Beneficiaries (Form 740 Filers)—If Line
11, column (c) is a positive amount, enter the difference as an
addition to federal adjusted gross income on Form 740, Schedule
M, line 2. If Line 11, column (c) is a negative amount, enter the
difference as a subtraction on Form 740, Schedule M, line 11.
Nonresident Beneficiaries (Form 740-NP Filers)—This
Schedule K-1 should reflect all income that has been claimed as
part of the income distribution deduction. However, nonresident
beneficiaries are only subject to tax on the following types of
income:
•	
•	
•	
•	
•	

from Kentucky sources;
from activities carried on in Kentucky;
from the performance of services in Kentucky;
from real or tangible property located in Kentucky; and
from a partnership or S corporation doing business in Kentucky.

Line 12(a)—Enter this amount on line 7 of the Kentucky Limited
Liability Entity Tax Credit Worksheet located in the Form 740
and Form 740-NP instructions under Business Incentive Credits.
Line 12(b)—Enter the Nonresident Withholding amount on Form
740, line 31(a) or Form 740-NP, line 31(h) and the Pass-through
Entity Tax Credit amount on Form 740 or Form 740-NP, line 31(g).