How to File Your Kentucky State Income Tax Return

Kentucky Capitol
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All residents of the state, as well as certain nonresidents who earned income in Kentucky, must file a Kentucky state income tax return. Kentucky residents are also responsible for local taxes based on their county of residence.

Finding Tax Forms

Kentucky state income tax forms can be found at post offices and libraries throughout the state. They can also be printed off the Kentucky Department of Revenue website. If you are a Kentucky resident who filed your tax return by mail last year, the state will mail your current-year forms to you at the beginning of tax season.

Make certain that you file the correct tax forms. Individuals who were residents of Kentucky for the entire year must file either Form 740 or Form 740-EZ. Individuals who were only residents for part of the year must file Form 740-NP.

Indiana residents who earned income in Kentucky are not required to file Kentucky state taxes. However, a local tax will be withheld from your paycheck for the Kentucky locality you work in. You may be able to claim taxes paid to a Kentucky locality as a deduction on your Indiana state taxes. Additionally, you may be able to file for a refund for any state taxes that you paid to Kentucky during the year. Consult a tax professional for more information.

Choose Your Filing Method

The fastest way to get your refund is to file your Kentucky state income taxes electronically. It's also the only method of filing that allows you to have your refund direct deposited into your bank account. If you file electronically, you do not need to mail in copies of your W-2s or tax return forms. The only thing you will have to mail is your payment, if applicable, with Form 740-V.

If you file a paper income tax form, you will need to send copies of your W-2s, any schedules and worksheets used, and Form 740-V with your payment, if applicable. The address that you'll send your tax return to depends on whether you're receiving a refund or submitting a payment.

Change Your Address

If your address has changed since the last time you filed a Kentucky state income tax return, simply use your new address when filling out your return for the current year. If your address changes after you file your taxes, you'll need to contact the Kentucky Department of Revenue in order to change your address.

Common State Tax Filing Issues

If you are unable to complete your tax return by the due date, you may apply for an extension by submitting Form 40A102. In addition, if you are unable to pay your tax bill in its entirety at the time you file, you may be able to set up a payment plan so that you can pay off your debt in monthly increments you can afford by submitting Form 12A200.

Find a Tax Preparer

If you aren't comfortable with doing your own taxes or if you just don't have the time, you'll need to find an income tax preparer. Many major tax preparation firms are scattered throughout the state, as well as many individual tax preparers.