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Individual Information

Individual Income Tax

Individual Income Tax provides links to Electronic Filing and Payment Information, downloadable Individual Income Tax forms and instructions, and to the Internal Revenue Service.

Free File Offers provides links to software from external sources that provides qualified taxpayers the opportunity to file federal and Kentucky individual income tax returns for free.  Please review each offer carefully to make sure you qualify.

2014 Energy Efficiency Products Credits

House Bill 2 enacted by the 2008 General Assembly created a new section of KRS Chapter 141 to provide for a nonrefundable credit against the tax imposed under KRS 141.020 or KRS 141.040 and KRS 141.0401 (for tax years beginning after Dec. 31, 2008).

Individuals may receive a nonrefundable credit of 30 percent of installed costs (subject to limitations) for upgraded insulation, energy-efficient windows and storm doors, and qualified energy property when installed on a dwelling unit located in the Commonwealth that is owned and used by the taxpayer as the taxpayer’s principal place of residence. Additional energy efficiency products credits may be allowed a taxpayer when certain qualified energy efficiency products are installed on property owned by the taxpayer, located in the Commonwealth, and used by the taxpayer as single-family or multifamily residential rental units or for commercial property.

CREDIT CARRY FORWARD: If you qualified for the Energy Efficiency Products Tax Credit in 2013 and could not utilize your entire approved credit, the balance may be carried forward to apply against your 2014 Kentucky tax liability. Unused amounts are limited to a one-year carry forward period.
 
Please refer to Kentucky Form 5695-K and instructions for credit limitations and additional information on these credits.

Energy Star Home or Energy Star Manufactured Home Credit

House Bill 2 enacted by the 2008 General Assembly created a new section of Chapter 141 to provide for a nonrefundable credit against the tax imposed under KRS 141.040 and KRS 141.0401 (for tax years beginning after Dec. 31, 2008), if a taxpayer builds a new Energy Star home located in the Commonwealth for use as a principal place of residence, or sells a new Energy Star manufactured home to a buyer who uses that home as a principal place of residence in the Commonwealth. The tax credit shall equal: (a) $800 if the taxpayer builds an Energy Star home; or (b) $400 if the taxpayer sells an Energy Star manufactured home. The tax credits provided by this new section of KRS Chapter 141 shall apply in the tax year in which the taxpayer completes construction of the Energy Star home or sells an Energy Star manufactured home.

Consumer Use Tax

Have you made out-of-state purchases and not paid at least 6 percent state sales tax to the seller at the time of purchase?  Then you may owe Consumer Use Tax of 6 percent on all of your out-of-state purchases.

Use Tax Look-Up Table to Assist Taxpayers in Reporting Untaxed Retail Purchases

In the 2014 Income Tax Instructions, the Kentucky Department of Revenue has again included a Use Tax Look-Up Table that allows individuals to estimate use tax owed on their total annual purchases from out-of-state retailers.

Recent statistics on holiday retail sales confirm that more and more consumers are establishing a tax liability for themselves through increased use of online shopping.  Internet sales during November and December increased at more than four times the rate of traditional brick and mortar stores.  

Kentucky consumers are required to report use tax on their individual income tax returns to accurately reflect their tax liability, and to ensure that our Kentucky-based retailers are not unfairly undercut by competing out-of-state retailers that fail to collect the tax on taxable products delivered into Kentucky.

When a web-based retailer or any out-of-state retailer does not collect the 6 percent Kentucky sales and use tax, the consumer is responsible for reporting and paying use tax on those untaxed purchases, in accordance with KRS 139.330.  The easiest way for the individual consumer to report and pay the use tax is on the state income tax return.

The Look-Up Table provides an option to report estimated use tax owed on retail purchases based upon Kentucky adjusted gross income when receipts are not readily available to calculate the actual unpaid use tax liability.

For questions or further assistance on sales and use tax matters, contact the Kentucky Department of Revenue at 502-564-5170.

The Sales Tax is imposed on the gross receipts derived from both retail sales of tangible personal property and sales of certain services to the final customer in Kentucky.

The Use Tax is imposed on the purchase price of tangible personal property purchased for storage, use or other consumption in Kentucky.  The use tax is a "back stop" for sales tax and generally applies to property purchased outside the state for storage, use or consumption within the state.

Kentucky Sales and Use Tax is imposed at the rate of 6 percent of gross receipts or purchase price.  There are no local sales and use taxes in Kentucky.

Inheritance & Estate Tax

Inheritance & Estate Tax provides a link to download Inheritance & Estate Tax forms and instructions. You can also access the Kentucky Inheritance and Estate Tax Laws.

Fiduciary Tax

Fiduciary Tax provides links to download Fiduciary Tax forms and instructions.

Motor Vehicle Usage Tax

Motor Vehicle Usage Tax provides links to downloadable Motor Vehicle Usage Tax forms, Motor Vehicle Usage Tax Laws and Regulations and Kentucky Vehicle Licensing Information.

 

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Last Updated 1/26/2015
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