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Kentucky Kentucky Farm Income Averaging
Extracted from PDF file 2023-kentucky-schedule-j.pdf, last modified September 2023Kentucky Farm Income Averaging
SCHEDULE J KENTUCKY FARM INCOME AVERAGING Commonwealth of Kentucky Department of Revenue Enclose with Form 740 2023 See federal instructions for Schedule J. Enter name(s) as shown on tax return. Your Social Security Number 1 Enter your taxable income from Form 740, line 11............................................................................................ 1 2 Enter your elected farm income. Do not exceed amount on federal Schedule J, line 2(a)*....................... 2 3 Subtract line 2 from line 1. If zero or less, enter -0-........................................................................................... 3 4 Compute the tax on the amount on line 3 using the 2023 tax rate of 4.5% (.045)............................................. 4 5 If you used Schedule J to figure your tax for: l 2022, enter the amount from your 2022 Schedule J, line 11. l 2021 but not 2022, enter the amount from your 2021 Schedule J, line 15. l 2020 but not 2021 or 2022, enter the amount from your 2020 Schedule J, line 3..................................................................................................................... 5 00 Otherwise, enter the taxable income from your 2020 Form 740, line 11. If zero or less, see instructions. 6 Divide the amount on line 2 by 3.0........................................................................... 6 00 7 Add lines 5 and 6. If zero or less, enter -0-............................................................... 7 00 8 Compute the tax on the amount on line 7 using the 2020 tax rate of 5% (.05)................................................. 8 9 If you used Schedule J to figure your tax for: l 2022, enter the amount from your 2022 Schedule J, line 15. l 2021 but not 2022, enter the amount from your 2021 Schedule J, line 3............ 9 00 Otherwise, enter the taxable income from your 2021 Form 740, line 11. If zero or less, see instructions. 10 Enter the amount from line 6.................................................................................... 10 00 11 Add lines 9 and 10. If less than zero, enter as a negative amount........................... 11 00 12 Compute the tax on the amount on line 11 using the 2021 tax rate of 5% (.05)............................................... 12 13 If you used Schedule J to figure your tax for 2022, enter the amount from your 2022 Schedule J, line 3. Otherwise, enter the taxable income from your 2022 Form 740, line 11. If zero or less, see instructions........................................... 13 00 14 Enter the amount from line 6.................................................................................... 14 00 15 Add lines 13 and 14. If less than zero, enter as a negative amount......................... 15 00 16 Compute the tax on the amount on line 15 using the 2022 tax rate of 5% (.05)............................................... 16 17 Add lines 4, 8, 12 and 16.................................................................................................................................. 17 18 If you used Schedule J to figure your tax for: l 2022, enter the amount from your 2022 Schedule J, line 12. l 2021 but not 2022, enter the amount from your 2021 Schedule J, line 16. l 2020 but not 2021 or 2022, enter the amount from your 2020 Schedule J, line 4. Otherwise, enter the tax from your 2020 Form 740, line 12........................ 18 00 19 If you used Schedule J to figure your tax for: l 2022, enter the amount from your 2022 Schedule J, line 16. l 2021 but not 2022, enter the amount from your 2021 Schedule J, line 4. Otherwise, enter the tax from your 2021 Form 740, line 12..................................... 19 00 20 If you used Schedule J to figure your tax for 2022, enter the amount from your 2022 Schedule J, line 4. Otherwise, enter the tax from your 2022 Form 740, line 12...................................................................................................... 20 00 21 Add lines 18 through 20.................................................................................................................................... 21 22 Subtract line 21 from line 17. If the result is less than the tax on the taxable income on line 1, enter the tax on Form 740, line 12 and check the box...................................................................... 22 * 00 00 00 00 00 00 00 00 00 00 Caution: If income from another state is included in the elected farm income on line 2, you must also compute the tax without the other state’s income to determine the state tax limitation for credit for taxes paid to other states. 230016 42A740-J (10-23) Page 1 of 2 Instructions for Schedule J Form 740 (2023) Schedule J Purpose of Form—Use Form Schedule J to elect to figure your 2023 Kentucky income tax by averaging, over the previous 3 years, all or part of your 2023 Kentucky taxable income from your trade or business of farming or fishing. This election may give you a lower tax if your 2023 Kentucky income from farming or fishing is high and your taxable income for one or more of the 3 prior years was low. Important Reminders Schedule J: when completing Kentucky Page 2 of 2 Line 9—If you used Schedule J to figure your tax for: l 2022 (that is, you entered the amount from the 2022 Schedule J, line 22 on line 12 of your 2022 Form 740), enter on line 9 the amount from your 2022 Schedule J, line 15. l 2021 but not 2022, enter on line 9 the amount from your 2021 Schedule J, line 3. l You must file a federal Schedule J in order to complete a Kentucky Schedule J. Otherwise, enter the taxable income from your 2021 Form 740, line 11. If the amount entered is zero or less, see federal instructions. l Use Kentucky figures when completing Kentucky Schedule J. Line 12—Compute the tax on line 11 using the 2021 tax rate of 5% (.05). l If income from another state is included in the elected farm income on line 2, you must also compute the tax without the other state’s income to determine the state tax limitation for credit for tax paid to other states. Line 13—If you used Schedule J to figure your tax for: l You may need copies of your original or amended income tax returns for 2020, 2021 and 2022 to figure your tax on Kentucky Schedule J. l Keep a copy of your 2023 income tax return to use for your income averaging in 2024, 2025 or 2026. l For definitions of farming business, fishing business and elected farm income, see federal instructions. l For tax years 2018 through 2022, the tax rate is a flat 5% (.05). l l Otherwise, enter the taxable income from your 2022 Form 740, line 11. If the amount entered is zero or less, see federal instructions. Line 16—Compute the tax on line 15 using the 2022 tax rate of 5% (.05). Line 18—If you used Schedule J to figure your tax for: l 2022, enter the amount from your 2022 Schedule J, line 12. l 2021 but not 2022, enter the amount from your 2021 Schedule J, line 16. l 2020 but not 2021 or 2022, enter the amount from your 2020 Schedule J, line 4. For tax year 2023, the tax rate is a flat 4.5% (.045). GENERAL INSTRUCTIONS Line 2, Elected Farm Income—See federal instructions. Line 4—Compute the tax using the 2023 rate of 4.5% (.045). Line 5—If you used Schedule J to figure your tax for: 2022 (that is, you entered the amount from the 2022 Schedule J, line 22 on line 12 of your 2022 Form 740), enter on line 13 the amount from your 2022 Schedule J, line 3. Otherwise, enter the tax from your 2020 Form 740, line 12. 2022 (that is, you entered the amount from the 2022 Schedule J, line 22 on line 12 of your 2022 Form 740), enter on line 5 the amount from your 2022 Schedule J, line 11. Line 19—If you used Schedule J to figure your tax for: l 2022, enter the amount from your 2022 Schedule J, line 16. l 2021 but not 2022, enter on line 5 the amount from your 2021 Schedule J, line 15. l 2021 but not 2022, enter the amount from your 2021 Schedule J, line 4. l 2020 but not 2021 or 2022, enter on line 5 the amount from your 2020 Schedule J, line 3. Otherwise, enter the tax from your 2021 Form 740, line 12. l Otherwise, enter the taxable income from your 2020 Form 740, line 11. If the amount entered is zero or less, see federal instructions. Line 8—Compute the tax on line 7 using the 2020 tax rate of 5% (.05). 42A740-J (10-23) Line 20—If you used Schedule J to figure your tax for: l 2022, enter the amount from your 2022 Schedule J, line 4. Otherwise, enter the tax from your 2022 Form 740, line 12.
Schedule J
More about the Kentucky Schedule J Corporate Income Tax TY 2023
We last updated the Kentucky Farm Income Averaging in February 2024, so this is the latest version of Schedule J, fully updated for tax year 2023. You can download or print current or past-year PDFs of Schedule J directly from TaxFormFinder. You can print other Kentucky tax forms here.
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TaxFormFinder has an additional 129 Kentucky income tax forms that you may need, plus all federal income tax forms.
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Form Sources:
Kentucky usually releases forms for the current tax year between January and April. We last updated Kentucky Schedule J from the Department of Revenue in February 2024.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Kentucky Schedule J
We have a total of nine past-year versions of Schedule J 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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