Instructions For Form 741 - Kentucky Fiduciary Income Tax Return (Page 2 of 2) in pdf

Line 11, Federal Estate Tax Deduction—Federal estate

Late Payment Penalty—If the amount of tax due as shown

deduction. Enter amount.

on Line 17 is not paid by the original due date of the return,

a penalty of 2 percent of the tax computed due may be

Refer to federal Form 1041 for the definition of the federal

assessed for each 30 days or fraction thereof that the tax

estate tax deduction.

is past due, not to exceed 20 percent. The minimum

penalty is $10. However, if the amount timely paid is 75

The federal estate tax deduction does not include

percent of the tax determined due by the Revenue

fiduciary income tax paid on federal Form 1041. A copy of

Cabinet, no late payment penalty will be assessed.

the computation for the deduction must be attached to

Form 741.

Interest—Interest will be assessed at the "tax interest

rate" from the original due date of the return until the date

Line 12—Subtract Lines 10 and 11 from Line 9.

of payment.

Line 13, Nonresident Beneficiaries—Subtract the amount

Note: Penalties but not interest may be reduced or waived

of income from intangibles attributable to nonresident

if reasonable cause for reduction or waiver can be shown.

beneficiaries. Attach a schedule that lists the name,

address, Social Security number and amount of income

SIGNATURE

of each beneficiary.

To be valid, this return must be signed by the fiduciary or

A nonresident beneficiary is subject to tax only on income

agent. If prepared by a person other than fiduciary or

received from real or tangible personal property located

agent, type or print name of person preparing the return.

in Kentucky. If the income is distributed or distributable to

a nonresident beneficiary, complete Schedule K-1 (Form

SCHEDULE K-1 INSTRUCTIONS

741).

Enter the federal amounts in column (b), any difference

between Kentucky and federal amounts in column (c) and

Line 14—Subtract Line 13 from Line 12. This is your

the Kentucky amounts in column (d).

taxable income.

Line 10—Add income amounts and subtract (loss) and

Line 15, Tax Computation—Compute your tax using the

deduction amounts in column (c).

following tax rate schedule.

If taxable income is:

Tax before credit is:

Kentucky Resident Beneficiaries (Form 740 Filers)—

Complete Schedule K-1 for resident beneficiaries if you

0 —

$2,999 ................ 2% of taxable income

have made entries on page 1, Lines 2, 3, 5, 6 or 7.

$3,000 —

$3,999 ................ 3% of taxable income minus $30

$4,000 —

$4,999 ................ 4% of taxable income minus $70

Nonresident Beneficiaries (Form 740-NP Filers)—

$5,000 —

$7,999 ................ 5% of taxable income minus $120

Complete Schedule K-1 for nonresident beneficiaries if

$8,000 and up ...................... 6% of taxable income minus $200

the estates or trust received income:

from Kentucky sources;

Any tax shown to be due in the computation of tax on

from activities carried on in Kentucky;

page 1 of the return must be paid in full at time of filing.

from the performance of services in Kentucky;

Attach check payable to the Kentucky State Treasurer.

from real or tangible property located in Kentucky; and

from a partnership or S corporation doing business in

Line 18(a)—Enter on Line 18(a) all estimated tax

Kentucky.

payments, credit from the previous year’s return and/or

extension payments.

Attach copies of federal K-1s if Kentucky K-1s are not

provided.

Line 18(b)—If Kentucky income tax was erroneously

withheld on income in respect of a decedent, attach a

ADDITIONAL INFORMATION

copy of the wage and tax statement of the deceased to

Form 741. Enter on Line 18(b) the amount of withholding.

For further information, refer to KRS 141.190, KRS

141.010, Kentucky Administrative Regulation 103 KAR

Line 18(c)—To claim credit(s) from Schedule UTC,

19:010 and instructions for federal Form 1041.

Unemployment Tax Credit, and/or Schedule RC,

Application for Income Tax Credit for Recycling and/or

If you need further assistance, contact a local Kentucky

Composting Equipment, enter the credit to the amount on

Taxpayer Service Center or the Revenue Cabinet,

Line 18(c) and identify as "UTC or RC credit."

Frankfort, Kentucky 40620, (502) 564-4581 or (502) 564-

3058 (Telecommunication Device for the Deaf).

Line 18(d)—Add Lines 18(a), (b) and (c).

Kentucky Revenue Cabinet

Line 19—Subtract Line 18(d) from Line 17.

Mission Statement

To provide courteous, accurate and efficient services for the

PENALTY AND INTEREST

benefit of Kentucky and its citizens, and administer the tax laws of

the Commonwealth in a fair and impartial manner.

Late Filing Penalty—If a return is not filed by the due date

* * * * * * * * * * * * *

or the extended due date, a penalty of 2 percent of the

The Kentucky Revenue Cabinet does not discriminate on the

total tax due for each 30 days or fraction thereof that a

basis of race, color, national origin, sex, religion, age or disability

return is not filed may be assessed, not to exceed 20

in employment or the provision of services.

percent. The minimum penalty is $10.

Instructions For Form 741 - Kentucky Fiduciary Income Tax Return Page 2

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