The
following information has been provided to assist in the preparation of
File Form KY 740 if any of the following apply:
The taxpayer:
1.
Has
2.
Meets the
3.
Is a resident of
4.
Is a resident of
5. Is a survivor or representative of a deceased taxpayer
1. Resident:
An individual who:
- Maintains an apartment, home, or other
place of abode in
- Exercises the rights of citizenship in
2. Part-Year Resident:
An individual who:
- Moved into
- Moved out of
3. Non-Resident:
An individual who does not:
- Maintain an apartment, home, or other
place of abode in
- Exercise the rights of citizenship in
Interest on Underestimate of Estimated Tax Payments:
Interest is applicable if any of the following apply:
The taxpayer:
1. Fails to file the required estimated tax return and pay the tax within the time allowed
2. Underestimated the required amount
The interest rate is assessed at the "tax interest rate" from the original due date of the return, to the date of payment.
For 2014, the rate is 6%.
If any state taxes due are paid after April 15, the taxpayer will owe an additional amount for a late payment penalty from April 15, to the date of payment. The penalty rate is 2% 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%. The minimum penalty is $10. If 75% of the tax due is paid in a timely manner, no late payment penalty will be assessed.
If
the
File
The taxpayer:
1. Is a nonresident
2. Has any income from
1. Resident:
An individual:
- Who thinks of
- Whose center of financial, social, and
family life is
- Who intends to come back to
2. Part-Year Resident:
An individual who:
- Moved into
- Moved out of
3. Non-Resident:
An individual:
- Whose permanent home is outside of
NOTE: Reciprocity does not apply to persons who lived in
The states and types of exemptions are:
NOTE: Taxpayers who qualify for this exemption and have no other
- Pay by the original due date at least 70% of the tax due on the return or 100% of the total tax reported last year, and
- File the return and pay the tax due by the extended due date
If any state taxes due are paid after April 15, the taxpayer will owe an additional amount for a late payment penalty from April 15, to the date of payment. The penalty rate is 2% per month or fraction of a month to a maximum of 20%.
If
the
Interest applies on delinquent tax from the original due date of the return until the tax is paid even if an extension of time is granted.
File
NOTE: An amended return can be filed within 3 years of the
original due date of the return, including extensions.
Use Form KY 740 NP to correct a nonresident or part-year resident return.
File
Schedule A to report itemized deductions for a
Enter "M" on federal Schedule A, state use field next to medical expenses to carry the amount to KY Schedule M, line 14. When code "M" entered, this amount will NOT carry to KY Schedule A, line 1.
File Schedule P to report pension income to be excluded from income for the current year.
All
pension and retirement income paid under a written retirement plan is eligible
for exclusion. If filing Form 740-NP, report only pension income received while
a resident of
Pension information will carry to Schedule P, Part I, line 1a if a code “A” is entered on 1099-R, state use box (US04 8240). Information will carry to Schedule P,
Part I, Line 1b if a code “B” is entered on 1099-R, state use box (US04 8240).
File Schedule M to report any modifications to federal adjusted gross income.
Enter "M" on federal Schedule A, state use field next to medical expenses to carry the amount to KY Schedule M, line 14. When code "M" entered, this amount will NOT carry to KY Schedule A, line 1.
Other additions may include:
- the portion of a lump-sum distribution on which the
taxpayer elected the 20% capital gains rate for federal income tax purposes.
- the federal net operating loss deduction
- the passive activity loss adjustment from
- differences in pension and IRA bases
- differences in gains (losses) from the sale of intangible
assets amortized under the provisions of the Revenue
Reconciliation Act of 1993
- differences in gains (losses) from the sale
of depreciable property placed in service after
Other subtractions may include:
- income received as a result of the Master Tobacco Settlement Agreement
- income received from the Tobacco Loss Assistance Program
- income of precinct workers for election training or working at election booths
- capital gains on property taken by eminent domain
-
- passive activity loss adjustment from
- income of a child reported on the parent's return
- artistic charitable contributions, if taxpayer does not itemize deductions
- the federal work opportunity credit used to reduce wages
- at-risk limitations
- accelerated depreciation of a qualified farm networking project
- differences in gains (losses) from the sale of intangible assets amortized under the provisions of the Revenue Reconciliation Act of 1993
- differences in gains (losses) from assets
purchased after
File
Schedule A (NR) to report itemized deductions for a
Enter "M" on federal Schedule A, state use field next to medical expenses to carry the amount to KY 740-NP, line 31. When code "M" entered, this amount will NOT carry to KY Schedule A, line 1.
File Schedule ME to report taxable moving expense reimbursements, as well as deductible moving expenses.
Moving expense reimbursements are not taxable and moving expenses are not deductible if you are a full year nonresident.
Any
payments made to the taxpayer or by any employer on the taxpayer's behalf are
considered income for a part-year resident. These payments will be included in
wages (box 1) or will be shown separately (
The
amount which must be reported to
File
Form 740ES to pay
Estimated tax payments must be filed if the taxpayer and/or spouse can reasonably be expected to have income from sources other than wages in an amount more than $5,000. If the amount of estimated tax due is less than $500, no declaration of estimated tax is required to be filed.
Interest:
Underestimating the required amount of tax or failure to file estimated tax returns and pay the tax within the time allowed will result in an assessment of interest.
File
Form 40A102 to request a four month extension of time to file the
If the taxpayer expects to owe additional tax, all of the state taxes due must be paid with Form 40A102 by April 15.
If any state taxes due are paid after April 15, the taxpayer will owe an additional amount for a late payment penalty from April 15 to the date of payment. The penalty rate is 2% per month. The maximum penalty is 20%.
If
the
NOTE:
Form 40A102 only extends time to file the
individual income tax return. It does not extend the
due date for payment of
KY
2210-K must be filed if the taxpayer expects to owe $500 or more in
a)
b)
And he/she expects credits and withholding to be less than the smaller of:
a) 100% of prior year's total tax liability
b) 70% of current year's tax liability
A penalty may be assessed if any of the following apply:
a) Did not pay enough estimated tax
b) Did not pay on time
c) Did not pay the required amount
A penalty may be assessed if less than 70% of the current year tax liability is paid. The penalty is 10% of the tax unpaid. The minimum penalty is $25.
To
ensure that taxpayer comply with
Attach the following items to Form 8879-K:
- W-2s, W-2Gs, 1099-Gs, and 1099s
- Copy of other state's return and proof of payment if claiming credit for income taxes paid to other state.
The taxpayer's signature is required for all returns. If the electronic return originator (ERO) changes the electronic return after Form 8879-K has been signed by the taxpayer but before it is transmitted, the taxpayer must complete and sign a corrected Form 8879-K.