Title XI, Revenue and Taxation

2018. As used in this chapter, for taxable years beginning on or after January 1, 2018: (1) "Adjusted gross income," in the case of taxpayers other than corporations, means the amount calculated in KRS 141.019; (2) "Captive real estate investment trust" means a real estate invest…

(1) (a) The provisions of subsections (2) to (11) of this section shall apply to taxable years beginning before January 1, 1994. (b) The provisions of subsections (12) to (15) of this section shall apply to taxable years beginning after December 31, 1993. (c) The provisions of su…

(1) Notwithstanding any other provision of this chapter, the net operating loss carryback-carryforward deduction, including casualty loss, allowed under Section 172 of the Internal Revenue Code shall apply only to such losses incurred in taxable years beginning after December 31,…

Receipts derived from taxes assessed and collected under the provisions of this chapter shall be appropriated for general fund purposes.

Allocation of income and business deductions between husband and wife. (1) If the federal adjusted gross income of husband or wife is entered on a separate federal return, their Kentucky adjusted gross incomes may be entered on their separate Kentucky tax returns or their joint K…

indirectly subject to taxation under this chapter -- No item to be deducted more than once. (1) (a) All deductions allowed by this chapter shall be limited to amounts directly or indirectly allocable to income subject to taxation under the provisions of this chapter. (b) Any dedu…

income tax changes made by the 2005 Regular Session and 2006 First Extraordinary Session of the General Assembly -- Authority to promulgate administrative regulations to explain or implement changes. Consistent with the provisions of 2005 Ky. Acts ch. 168 and the provisions of 20…

than corporations. In the case of taxpayers other than corporations: (1) Adjusted gross income shall be calculated by subtracting from the gross income of those taxpayers the deductions allowed individuals by Section 62 of the Internal Revenue Code and adjusting as follows: (a) E…

credits -- Income of nonresidents subject to tax -- Election to pay tax imposed by KRS 141.023. (1) An annual tax shall be paid for each taxable year by every resident individual of this state upon his or her entire net income as defined in this chapter. The tax shall be determin…

(1) Notwithstanding any statutory provisions to the contrary, a deduction shall be allowed individuals against adjusted gross income in arriving at net income for "qualified artistic charitable contributions" in an amount equal to the fair market value of the property contributed…

If a taxpayer is entitled to more than one (1) of the tax credits allowed against the tax imposed by KRS 141.020, 141.040, and 141.0401, the priority of application and use of the credits shall be determined as follows: (1) The nonrefundable business incentive credits against the…

Taxability after December 31, 1997. Notwithstanding the provisions of KRS 141.010, federal retirement annuities, and local government retirement annuities paid pursuant to KRS 67A.320, 67A.340, 67A.360 to 67A.690, 79.080, 90.400, 90.410, 95.290, 95.520 to 95.620, 95.621 to 95.629…

December 31, 1997 -- Computation. (1) Notwithstanding the provisions of KRS 141.010(1), for tax years commencing on or after January 1, 1998, the amount of all previously untaxed distributions from a retirement plan paid pursuant to KRS Chapters 6, 16, 21, 61, 67A, 78, 90, 95, 96…

To facilitate tax computation and tax return preparation, the Department of Revenue may develop optional tax tables and specify the classes of taxpayers eligible to utilize the tables in the preparation of their returns.

fiduciaries. (1) The tax imposed by KRS 141.020 upon individuals shall apply to estates and trusts and to all fiduciaries. This tax shall be paid annually upon the net income of estates and of any property held in trust at the rates specified in KRS 141.020. (2) The fiduciary sha…

In the case of corporations: (1) Gross income shall be calculated by adjusting federal gross income as defined in Section 61 of the Internal Revenue Code as follows: (a) Exclude income that is exempt from state taxation by the Kentucky Constitution and the Constitution and statut…

(1) Every corporation doing business in this state, except those corporations listed in paragraphs (a) and (b) of this subsection, shall pay for each taxable year a tax to be computed by the taxpayer on taxable net income at the rates specified in this section: (a) For taxable ye…

(1) As used in this section: (a) "Kentucky gross receipts" means an amount equal to the computation of the numerator of the apportionment fraction under KRS 141.120, any administrative regulations related to the computation of the sales factor, and KRS 141.121 and includes the pr…

manufacturing or heating. (1) There shall be allowed a credit against the tax imposed on any corporation subject to taxation under KRS 141.040 and 141.0401, and which, on or after January 1, 1984, installs, modifies, and utilizes facilities located in Kentucky for generating stea…

Refund of taxes -- Administrative regulations. (1) For taxable years beginning on or after January 1, 2019, every corporation and limited liability pass-through entity subject to taxation under KRS 141.040 and 141.0401 shall make estimated tax payments if the taxes imposed by KRS…

-- Forms -- Regulations. (1) Except to the extent required by differences between this chapter and its application and the federal income tax law and its application, the administrative and judicial interpretations of the federal income tax law, computations of gross income and d…

(1) The amount of premiums paid for health insurance shall be treated as an income tax credit for state income tax purposes, and as a credit against the limited liability entity tax imposed by KRS 141.0401, with the ordering of the credits as provided in KRS 141.0205, as follows:…

-- Application to income tax obligations -- Annual report. (1) As used in this section, unless the context requires otherwise: (a) "Approved company" has the same meaning as in KRS 154.12-204; (b) "Corporation" has the same meaning as in KRS 154.12-204; (c) "Occupational upgrade …

(1) For the purposes of this section, "code" or "Internal Revenue Code" means the Internal Revenue Code in effect as of December 31, 1981. (2) For taxable years beginning before January 1, 2028, there shall be allowed as a credit for any taxpayer against the tax imposed by KRS 14…

credits. (1) As used in this section: (a) "Federal poverty level" means the Health and Human Services poverty guidelines updated periodically in the Federal Register by the United States Department of Health and Human Services under the authority of 42 U.S.C. sec. 9902(2) and ava…

A resident individual may deduct from the tax computed under the provisions of KRS 141.020 a credit for household and dependent care services necessary for gainful employment. The credit shall be twenty percent (20%) of the federal credit allowed under Section 21 of the Internal …

(1) As used in this section, unless the context requires otherwise: (a) "Authority" means the Kentucky Economic Development Finance Authority as created pursuant to KRS 154.20-010; (b) "Investor" has the same meaning as set forth in KRS 154.20-254; (c) "Investment fund" has the s…

(1) As used in this section, "eligible Kentucky education institution" means an institution as defined by Section 25A of the Internal Revenue Code that is located within the Commonwealth of Kentucky. (2) For taxable years beginning after December 31, 2004, an individual may deduc…

(1) Whenever an individual who is a resident of this state has become liable for income tax to another state upon all or any part of the individual's net income for the taxable year, derived from sources without this state and subject to taxation under this chapter, the amount of…

(1) The term "political party" shall, for the purposes of this section and KRS 141.072 and 141.073, mean those parties who met the requirements of KRS 118.015 on January 1 of the taxable year. (2) Every individual whose income tax liability for the taxable year is as great or gre…

party organizations. The designation for a political party shall appear on the face of the individual income tax return. Fifty cents ($0.50) of any designation pursuant to KRS 141.071 shall be reserved for remittance to the appropriate official of the local governing authority of…

The Department of Revenue shall promulgate such rules and regulations as may be necessary to effectively administer the provisions of KRS 141.071 and 141.072.

(1) An individual, at his election, may deduct from his adjusted gross income a standard deduction of: (a) Six hundred and fifty dollars ($650) for taxable years beginning before December 31, 1996; (b) Nine hundred dollars ($900) for taxable years beginning after December 31, 199…

Apportionment. This section applies to taxable years beginning on or after January 1, 2018. (1) As used in this section: (a) "Apportionable income" means: 1. All income that is apportionable under the Constitution of the United States and is not allocated under this section, incl…

treasury function -- Passenger airlines -- Qualified air freight forwarders -- Administrative regulations regarding sourcing of receipts. (1) As used in this section: (a) "Affiliated airline" means an airline: 1. For which a qualified air freight forwarder facilitates air transpo…

If any corporation or pass-through entity dissolves or withdraws from this state during any taxable year, or if any corporation in any manner surrenders or loses its charter during any taxable year, the dissolution, withdrawal, or loss or surrender of charter shall not defeat the…

(1) If the taxpayer makes, or is required to make, a federal income tax return, the taxpayer's income shall be computed for the purposes of this chapter on the basis of the same calendar or fiscal year required by the federal government, and the taxpayer shall employ the same met…

(1) Every corporation subject to the jurisdiction of this state, unless excused by the department, shall render a correct report of its payments of dividends to residents of this state, stating the name and address of each shareholder, the number of shares owned by him, and the a…

may be required -- Returns for cooperatives. (1) All returns of income for the preceding taxable year shall be made by April 15 in each year, except returns made on the basis of a fiscal year, which shall be made by the fifteenth day of the fourth month following the close of the…

(1) The department may grant any taxpayer other than a corporation a reasonable extension of time for filing an income tax return whenever good cause exists, and shall keep a record of every extension. Except in the case of an individual who is abroad, no extension shall be grant…

(1) As used in this section and KRS 141.019 and 141.900: (a) "Active duty" means the day the person assembles at his or her armory or other designated place until the day he or she returns there and has been properly relieved, including: 1. Fractional parts of a day which count a…

(1) For taxable years beginning before January 1, 2005: (a) Every individual, except as otherwise provided in this subsection, having for the taxable year an adjusted gross income which exceeds five thousand dollars ($5,000), if single, or if married and not living with husband o…

(1) Every fiduciary, except a receiver appointed by authority of law in possession of part only of the property of an individual, shall make under oath a return for any of the following individuals, estates, or trusts for which he acts, setting forth therein such information as m…

consolidated returns. (1) Subsections (2) to (7) of this section shall apply for taxable periods ending before January 1, 2005, and election periods beginning prior to January 1, 2005. (2) As used in subsections (2) to (7) of this section, unless the context requires otherwise: (…

returns -- Taxable years beginning on or after January 1, 2019. (1) This section shall apply to taxable years beginning on or after January 1, 2019. (2) As used in this section: (a) "Affiliated group" means affiliated group as defined in Section 1504(a) of the Internal Revenue Co…

other corporations to file a combined report -- Administrative regulations -- Taxable years beginning on or after January 1, 2019. (1) This section shall apply to taxable years beginning on or after January 1, 2019. (2) As used in this section: (a) "Combined group" means the grou…

(1) As used in this section: (a) "Intangible property" means franchises, patents, patent applications, trade names, trademarks, service marks, copyrights, trade secrets, and similar types of intangible assets; (b) "Intangible expenses" includes the following only to the extent th…

owners of pass-through entities -- Appointment issues for pass-through entities. (1) Every pass-through entity doing business in this state shall, on or before the fifteenth day of the fourth month following the close of its annual accounting period, file a copy of its federal ta…

individuals -- Payment of estimated tax. (1) For a nonresident individual partner, member, or shareholder, the payment of estimated tax required by KRS 141.206 shall be calculated under KRS 141.020 and 141.305 for the taxable year. (2) The payment of estimated tax shall be made i…

(1) For the purposes of this section, "limited liability company" shall mean any company subject to the provisions of KRS Chapter 275. (2) For taxable years beginning after December 31, 2004, and before January 1, 2007, a limited liability company shall file a Kentucky corporate …