Form 740-Ez - Kentucky Individual Income Tax Return

Form 740-EZ (2016)

Page 2

INSTRUCTIONS—FORM 740-EZ

Enter in the space provided the decimal amount from the following

Who May Use Form 740-EZ—You may use Form 740-EZ if all five

table.

of the following apply:

 you were a Kentucky resident for the entire year;

Family Size

Percent of Tax

 you are filing federal Form 1040EZ;

One

as Family Size Tax Credit

 your filing status is single;

If the Kentucky modified

Enter decimal amount

gross income (Line 1) is:

on Line 7

 you do not claim additional credits for being age 65 or over,

blind, or a member of the Kentucky National Guard at the end

over

but not over

of 2016; and

$11,880 ...................... 1.00

(100%)

 you had only wages, salaries, tips, unemployment compensation,

$11,880

$12,355 ...................... 0.90

(90%)

taxable scholarship or fellowship grants, and your taxable

$12,355

$12,830 ...................... 0.80

(80%)

interest was $1,500 or less.

$12,830

$13,306 ...................... 0.70

(70%)

$13,306

$13,781 ...................... 0.60

(60%)

If you do not meet all five of the above requirements, see Form

$13,781

$14,256 ...................... 0.50

(50%)

740 instructions.

$14,256

$14,731 ...................... 0.40

(40%)

$14,731

$15,088 ...................... 0.30

(30%)

When to File—The 2016 Form 740-EZ must be postmarked no later

$15,088

$15,444 ...................... 0.20

(20%)

than April 18, 2017, to avoid penalties and interest.

$15,444

$15,800 ...................... 0.10

(10%)

Social Security Number—You are required to provide your social

Multiply amount on Line 6 by decimal amount. Enter result on Line

security number per Section 405, Title 42, of the United States

7. This is your Family Size Tax Credit.

Code. This information will be used to establish your identity for

tax purposes only.

Line 9, Kentucky Use Tax—Enter 6 percent of out-of-state purchases

for use in Kentucky on which sales tax was not charged. Include

COMPLETING FORM 740-EZ—For more information, see the General

Internet and catalog purchases, subscriptions, furniture, carpet,

Instructions. You may also contact the Department of Revenue in

boats, etc.

Frankfort at (502) 564-4581 or a Kentucky Taxpayer Service Center.

Line 11, Kentucky Tax Withheld—Enter the amount of Kentucky

income tax withheld as shown on your 2016 wage and tax

Please print your numbers inside the boxes with black ink. Do not

statements. These statements must be attached to your return.

use dollar signs.

Make sure you file the copy designated to be filed with your state

return. Do not include amounts withheld by your employer for other

Political Party Fund Designation—You may designate $2 of your

states. Amounts withheld in other states cannot be credited to your

taxes to either the Democratic or Republican party if you have a

Kentucky income tax. Local government occupational, license or

tax liability of at least $2.

income taxes must not be included on Line 11.

LINE-BY-LINE INSTRUCTIONS

Line 12—If the amount on Line 11 (Kentucky Tax Withheld) is

more than the amount on Line 10 (Total Tax Liability), you have an

overpayment and are due a refund. Subtract Line 10 from Line 11,

Line 1—Enter federal adjusted gross income from Form 1040EZ,

and enter the difference on Line 12 as an overpayment. However,

Line 4. (Do not confuse federal adjusted gross income with federal

if your Total Tax Liability on Line 10 is larger than Line 11, you owe

taxable income shown on the federal return.) If $15,800 or less,

additional tax. Subtract Line 11 from Line 10 and enter on Line 16.

see instructions for Line 7 and enter the decimal amount on Line 7.

Line 13—If you show an overpayment on Line 12, you may contribute

If you are not required to file a federal income tax return, enter the

to: (a) the Nature and Wildlife Fund, (b) the Child Victims’ Trust

total income from sources within and without Kentucky.

Fund, (c) the Veterans’ Program Trust Fund, (d) the Breast Cancer

Research and Education Trust Fund, (e) the Farms to Food Banks

Line 2—The standard deduction of $2,460 has been preprinted. If

Trust Fund, (f) the Local History Trust Fund, (g) Special Olympics

your itemized deductions exceed $2,460, it will benefit you to file

Kentucky, (h) the Pediatric Cancer Research Trust Fund, and/or

Form 740 and itemize your deductions on Schedule A.

(i) the Rape Crisis Center Trust Fund. Donations are voluntary and

amounts donated will be deducted from your refund.

Line 4—Compute your tax using the following tax rate schedule.

Enter the amount(s) you wish to contribute on Lines 13(a) through

13(i). The total of these amounts cannot exceed the amount of the

If taxable income is:

Tax before credit is:

overpayment.

0 — $3,000 ................ 2% of taxable income

Line 16—You must pay any tax due shown on Line 16. Make check

$3,001 — $4,000 ................ 3% of taxable income minus $30

payable to Kentucky State Treasurer, and attach it to your return.

$4,001 — $5,000 ................ 4% of taxable income minus $70

On the face of the check, please write “KY Income Tax–2016” and

your Social Security number.

$5,001 — $8,000 ................ 5% of taxable income minus $120

Underpayment of Estimated Tax—If the amount owed is more

$8,001 — $75,000 ................ 5.8% of taxable income minus $184

than 30 percent of the income tax liability on Line 8, you may be

$75,001 and up ..................... 6% of taxable income minus $334

subject to a penalty of 10 percent of the underpayment of estimated

Example: (Taxable income) $8,500 x 5.8% – $184 = $309

tax. The minimum penalty is $25. The amount of the penalty may

be calculated on Form 2210-K, which may be obtained from the

Note: An optional tax table is available online at

Department of Revenue.

or by calling the Department of Revenue, (502) 564-4581.

Interest and Penalties—File your return and pay any additional tax

Line 7—Family Size Tax Credit—For single persons eligible to file

due by April 18, 2017 to avoid interest and penalties. See the General

Form 740-EZ, Kentucky family size is one and Kentucky modified

Instructions or contact the Department of Revenue for additional

gross income is equal to federal adjusted gross income. A family size

information.

tax credit is allowed for single persons whose Kentucky modified

Note: Penalties but not interest may be reduced or waived if

gross income is not over $15,800. If over $15,800, you do not qualify

reasonable cause can be shown.

for this tax credit. Skip Line 7.

Form 740-Ez - Kentucky Individual Income Tax Return - 2016 Page 2

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