Individual Income Tax Forms
Form 740 Kentucky Individual Income Tax Return Resident
Form 740-EZ Kentucky Individual Income Tax Return
Form 740-NP Kentucky Individual Income Tax Return Nonresident
Form 740-NP-R Kentucky Income Tax Return Nonresident Reciprocal State
Corporate Income Tax Forms
Form 720 Kentucky Corporation Income Tax
Form 720S Kentucky S Corporation Income Tax
Sales Tax Forms
Form 51A209 Sales and Use Tax Refund Application
Form 51A113O Consumer's Use Tax Return
Property Tax Forms
Form 62A500 Tangible Personal Property Tax Return
Form 62A023 Application for Exemption from Property Taxation
There are a number of taxes applicable to the state of Kentucky, which includes sales tax and six income brackets for personal income taxation. Tax returns are due on April 15.
Kentucky state sales tax – 6%, (food, prescription drugs, utilities and medical supplies exempt)
Kentucky state personal income tax
Six income brackets for single filings
2% - first $3,000 of taxable income
3% - $3,000 - $4,000
4% - $4,000 - $5,000
5% - $5,000 - $8000
5.8% - $8,000 - $75,000
6% - $75,000+
Kentucky state excise taxes
Taxes assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes.
$.60 per package of 20 cigarettes, $.19 per unit of snuff
15% taxation on other tobacco products
$1.92 tax per gallon of liquor, no less than 12 cents on half pint retial containers
$2.50 per 31 gallon barrel of beer
$.50 per gallon of wine
Motor vehicle usage tax – 6% of selling price
$.21 a gallon on gasoline , $.18 on diesel
Kentucky State marijuana/drug taxes
$1,000 for each marijuana plant, $3.50 per gram of processed marijuana
$200 for each gram of cocaine
Tax payments of this nature are made anonymously and signified by adding a tax stamp to the product. This is a legally questionable tax due to the implications for self-incrimination for all that buy these stamps.
Kentucky inheritance tax
Kentucky would only impose an estate tax if the federal estate tax were phased out.
Kentucky payroll taxes
State Disability Insurance – none
State Unemployment Insurance - 1% to 10%, wage base is $8,000. Employer contribution is 10% for new construction employers, 2.7% for all others.
Kentucky state property tax
Property must be assessed by Jan 1, annually and listed by March 15. The Kentucky State property tax is 13.6 cents per $100 of assessed value. This tax goes directly into the state’s general fund.
Pension income exclusion stands at $41,110 for government pensions and US Railroad Retirement Board benefits. Not adjusted for inflation.
Low income tax credit - $10,830 for single person, $14,570 family of two, up to $22,050 for a family of four.
Qualified persons may be exempt for property under $34k under the homestead exemption. This generally applies to seniors over the age of 65, individuals that are totally disabled and disabled members and veterans of the armed forces. All others under 65 must file applications annually.
Corporate income tax
4 percent of the first $50,000 of taxable income, 5 percent of the next $50,000 of taxable income, 6 percent of the taxable income over $100,000.
Social Security, railroad retirement are not taxed under Kentucky law.
Medical expenses that exceed 7.5% of income can be deducted.
Military personnel receiving their only income from the military pay will be exempt from taxes in Kentucky. They will not need to file tax returns.
Kentucky income tax filing is required of all residents as well as of residents whose income is attained from the state as well. The state's individual income tax statutes stem from the "Internal Revenue Code," which increase tax rates from 2% to that of 6%.
According to this code, residents must file either a form 740 or a 740-EZ, while full-year nonresidents must file form 740-NP. In addition to these requirements, there also exist credits that have been instituted as of 2009. Examples of such credits include the "Kentucky Energy Efficiency Products Tax Credit" and the "New Home Tax Credit." In order to be eligible for the energy efficiency credit, form 5695-K must be filled. If approved, the credit, equaling 30% of all expenses related to installation, will take effect for the taxable year that all installation was completed in its entirety.
Areas of credit include "energy efficient windows," "active & passive solar heating systems," and "upgraded insulation," to state a few. The new home credit effects individuals who purchased residence during the yearlong period falling between that of July 26, 2009 to July 25, 2010. If you are granted such credit, you will be sent a "credit allocation letter," which will contain within it a code from the Department of Revenue confirming your approval. In order for this to go into effect, then, you must attach this letter to your Kentucky income tax return.
In reference to Kentucky sales tax, recent changes have occurred in which the state has entered into a "Streamlined Sales Tax Agreement." According to this agreement, certain states have joined each other in setting forth a mutual statement of the rules for sales and use tax. In this way, these states as well as Kentucky will mirror each other in terms of those specifications. Kentucky sales tax will, then, encompass the sale of "tangible personal property" by retailers as well as specific services within the state.
In contrast, use tax is placed of products for storage or other consumption purposes. This usually relates to such storage procured outside of the boundaries of Kentucky. Examples of such "consumer" use tax that is needed include online or catalog purchases. You should be aware that, upon completing such purchase, you may actually owe payment of use taxes. Kentucky sales tax is maintained at a rate of 6%, with no local taxes being in existence to present any additional variations.
For drivers within the state of Kentucky, they may not actually know that "motor fuels taxes" exist for distributors. These consist of taxes imposed upon gasoline and other such fuels. The minimum price of taxation is that of a whole sale amount of $1.786 per gallon. Liquid petroleum gases are also taxed as soon as it is determined that such gas is being used by vehicles on public roadways. In contrast to other taxes collected within the state of Kentucky, motor fuels taxes are to be sent to the "Road Fund." These funds go towards the creation and overseeing of Kentucky roads.
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