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Common Kentucky Individual Income Tax Credits

There are four common nonrefundable individual income available for taxpayers when the tax return is filed.  For more detailed information on these credits, please see the instructions for filing Form 740 or contact the Department of Revenue at (502) 564-4581. 

The four credits are:

(1) KRS 141.020—Personal and Dependency Credits
(2) KRS 141.066—Nonrefundable Family Size Tax Credit
(3) KRS 141.069—Education Tuition Credit
(4) KRS 141.067—Household (Child) and Dependent Care

Personal and Dependency Credits

Personal and Dependency Credits—Personal tax credits are reported in Section B of form 740 and 740NP. A credit of $10 is allowed for each personal and dependency credit claimed.

Additional Personal Credits—An additional $40 credit is allowable for each individual reported on the return that is age 65 or over. Also an additional $40 credit is allowable if an individual is legally blind. Persons that are both age 65 or older and legally blind are eligible for both added credits for a total of $80 per person.    

Kentucky National Guard Members—Persons who are members of the Kentucky National Guard may claim an additional credit of $20.

Kentucky law specifically restricts this credit to Kentucky National Guard members; military reserve members are not eligible.

Nonrefundable Family Size Tax Credit

Nonrefundable Family Size Tax Credit—The Family Size Tax Credit is based on modified gross income (MGI) and the size of the family. If total MGI is $31,721 or less for 2014, you may qualify for the Kentucky Family Size Tax Credit.

Education Tuition Tax Credit

Education Tuition Tax Credit—A credit equal to 25 percent of the amount of the federal American Opportunity Credit and the Lifetime Learning Credit is available. The credit applies only to undergraduate studies, phases out for higher incomes, applies to most higher education opportunities within Kentucky and may be carried forward for up to five years.

Child and Dependent Care Credit

Child and Dependent Care Credit - Kentucky - Taxpayers claiming the child and dependent care credit must file Form 740 or 740-NP as this credit cannot be taken on Form 740-EZ. The credit is claimed on Line 25 - Form 740 or Form 740 NP by entering the amount of the federal credit from federal Form 2441 or Form 1040A, Schedule 2 and multiplying by 20%.

To learn more about the credits available on the federal income tax return, including the earned income tax credit (EITC), please visit


Last Updated 1/22/2015