Form 740-Ez - Kentucky Individual Income Tax Return

Form 740-EZ (2008)

Page 2

INSTRUCTIONS—FORM 740-EZ

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

Enter in the space provided the decimal amount from the following

of the following apply:

table.

you were a Kentucky resident for the entire year;

Family Size

Percent of Tax

One

as Family Size Tax Credit

you are ﬁ ling federal Form 1040EZ;

If the Kentucky modiﬁ ed

Enter decimal amount

your ﬁ ling status is single;

gross income (Line 1) is:

on Line 7

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

over

but not over

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

of 2008; and

$10,400 ...................... 1.00

(100%)

$10,400

$10,816 ...................... 0.90

(90%)

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

$10,816

$11,232 ...................... 0.80

(80%)

taxable scholarship or fellowship grants, and your taxable

$11,232

$11,648 ...................... 0.70

(70%)

interest was $1,500 or less.

$11,648

$12,064 ...................... 0.60

(60%)

$12,064

$12,480 ...................... 0.50

(50%)

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

$12,480

$12,896 ...................... 0.40

(40%)

740 instructions.

$12,896

$13,208 ...................... 0.30

(30%)

When to File—The 2008 Form 740-EZ must be postmarked no later

$13,208

$13,520 ...................... 0.20

(20%)

$13,520

$13,832 ...................... 0.10

(10%)

than April 15, 2009, to avoid penalties and interest.

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

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

General Instructions. You may also contact the Department of

Line 7. This is your Family Size Tax Credit.

Revenue in Frankfort at (502) 564-4581 or a Kentucky Taxpayer

Service Center.

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

Please print your numbers inside the boxes with black ink. Do

Internet and catalog purchases, subscriptions, furniture, carpet,

not use dollar signs.

boats, etc.

Enter your Social Security number on your return. To protect your

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

privacy, your Social Security number is not printed on the peel-off

income tax withheld as shown on your 2008 wage and tax

label that came in the mail.

statements. These statements must be attached to your return.

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

Make sure you ﬁ le the copy designated to be ﬁ led with your state

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

return. Do not include amounts withheld by your employer for

tax liability of at least $2.

other states. Amounts withheld in other states cannot be credited

to your Kentucky income tax. Local government occupational,

LINE-BY-LINE INSTRUCTIONS

license or income taxes must not be included on Line 11.

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

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

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

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

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

taxable income shown on the federal return.) If $13,832 or less, see

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

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

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

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

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

total income from sources within and without Kentucky.

16.

Line 2—The standard deduction of $2,100 has been preprinted. If

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

your itemized deductions exceed $2,100, it will beneﬁ t you to ﬁ le

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

Form 740 and itemize your deductions on Schedule A.

Trust Fund, (c) the Veterans’ Program Trust Fund and/or (d) the

Breast Cancer Research and Education Trust Fund. Donations

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

are voluntary and amounts donated will be deducted from your

refund.

If taxable income is:

Tax before credit is:

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

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

13(c) and/or 13(d). The total of these amounts cannot exceed the

amount of the overpayment.

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

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

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–2008” 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

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

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

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

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

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

Department of Revenue.

Note: An optional tax table is available online at

Interest and Penalties—File your return and pay any additional

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

tax due by April 15, 2009 to avoid interest and penalties. See the

General Instructions or contact the Department of Revenue for

Line 7, Family Size Tax Credit—For single persons eligible to ﬁ le

additional information.

Form 740-EZ, Kentucky family size is one and Kentucky modiﬁ ed

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

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

size tax credit is allowed for single persons whose Kentucky

reasonable cause can be shown.

modiﬁ ed gross income is not over $13,832. If over $13,832, you

do not qualify for this tax credit. Skip Line 7.

Signature—Each return must be properly signed by the taxpayer.

Form 740-Ez - Kentucky Individual Income Tax Return - 2008 Page 2

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