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
Kentucky Tax Forms: An Essential Guide
Taxation is a significant aspect of any government as it is the primary source of revenue for any state. Kentucky, like any other state in the US, has a specific tax structure. With the tax season upon us, it is essential to understand the Kentucky tax forms to ensure that we comply with the law when filing our taxes.
This article will explore Kentucky tax forms in detail and provide you with the necessary information you need to ensure that you file your taxes accurately and on time.
What are Kentucky Tax Forms?
Kentucky Tax Forms are specific forms used to report the income earned in the previous year and calculate the tax liability owing to the state of Kentucky. The tax forms vary depending on the nature of the income earned, business type, and residency status.
Kentucky has three types of taxes: income tax, sales tax, and property tax. Income tax applies to individuals and businesses that earn income in Kentucky. Sales tax applies to the purchase of goods and services in Kentucky, while property tax is assessed on the value of real estate property owned in Kentucky.
The types of Kentucky tax forms include the following:
1. Individual Income Tax Forms
This type of Kentucky tax form is used to report the individual’s income earned in the previous year. It applies to residents of Kentucky and non-residents who earned income while working in Kentucky.
The individual income tax forms vary depending on the amount of income earned and the individual’s filing status. The forms include:
• Form 740: This is the standard individual income tax return form for Kentucky residents. It is used to report income, tax deductions, and credits claimed by the individual.
• Form 740-NP: This form is used by non-residents who earned income while working in Kentucky. It helps to calculate the tax liability owed to Kentucky based on the income earned in the state.
• Form 740-EZ: This form is a simplified version of Form 740. It is designed for individuals who have a straightforward tax situation. It is also for those who do not qualify for itemized deductions.
2. Business Income Tax Forms
Businesses in Kentucky are subject to income tax on income earned within the state. The business income tax forms vary depending on the business structure, size, and industry. The forms include:
• Form 720: This is the Business License/Annual Report form. All corporations, limited liability companies, and partnerships must file this form with the Kentucky Secretary of State annually.
• Form 720S: This form is used by S Corporations to report their income, deductions, and credits. It is similar to Form 1120S, the federal form for S Corporations.
• Form 765: This form is used by partnerships and limited liability companies to report their income, deductions, and credits.
• Form 41A720S: This is the Kentucky S Corporation Income Tax and LLET Return. It is used by S Corporations to calculate their income tax liability and Limited Liability Entity Tax (LLET).
3. Sales and Use Tax Forms
Sales and use tax is imposed on the sale of tangible personal property and certain services in Kentucky. The sales and use tax forms include:
• Form 51A102: This is the Sales and Use Tax Worksheet. It is used to calculate the tax liability owed on the sale of tangible personal property and certain services.
• Form 51A102E: This form is used by businesses to report their sales and use tax liability to the Kentucky Department of Revenue.
• Form 51A126: This is the Streamlined Sales Tax Agreement Certificate of Exemption. It is used by businesses to claim an exemption from sales tax in Kentucky.
4. Property Tax Forms
Property tax is assessed on the value of real estate property owned in Kentucky. Property tax forms include:
• Form 620: This is the Tangible Personal Property Tax Return form. It is used by businesses to report tangible personal property owned in Kentucky.
• Form 62A500-D: This is the Real Property Tangible Return form. It is used to report the value of real property owned in Kentucky that is not covered by the PVA form.
• PVA Form: This is the Property Valuation Administrator (PVA) form. It is used to assess the value of property owned in Kentucky.
Changes to Kentucky Tax Forms for 2021
Kentucky has made a few changes to its tax forms for the 2021 tax year. The changes include:
• Increase in Standard Deduction: The standard deduction for single filers, married filing separately, and heads of households has increased from $2,610 to $2,650. The standard deduction for married filing jointly has increased from $5,220 to $5,300.
• Unemployment Benefits: The American Rescue Plan Act of 2021 exempts the first $10,200 of unemployment compensation received in 2020 from federal income tax. Kentucky has updated its tax forms to reflect this change.
• Kentucky SB 9: This bill exempts Paycheck Protection Program (PPP) loans from state income tax. It also allows businesses to deduct expenses paid with forgiven PPP loans. Kentucky has updated its tax forms to reflect this change.
Conclusion
Filing taxes can be a daunting task for many people. However, with the right knowledge of the Kentucky tax forms available, it is easier to file taxes accurately and on time. This article has explored the different types of Kentucky tax forms and the changes made to them for the 2021 tax year. Be sure to consult a tax professional or visit the Kentucky Department of Revenue website for more information when filing your taxes. Remember that filing taxes accurately and on time helps to ensure that you avoid penalties and interest charges from the Kentucky Department of Revenue.
