Form 42a740-S4 - Instructions For Filing Estimated Tax Vouchers

42A740-S4 (10-11)

INSTRUCTIONS FOR FILING

2012

Commonwealth of Kentucky

ESTIMATED TAX VOUCHERS

DEPARTMENT OF REVENUE

WHAT’S NEW FOR 2012—The standard deduction will

FAMILY SIZE TAX CREDIT—The Family Size Tax Credit is

based on modified gross income (MGI) and the size of the

increase to $2,290.00 for 2012.

family. If your total MGI is $29,726 or less you may qualify

for Kentucky Family Size Tax Credit.

WHO MUST MAKE PAYMENTS—Individuals

who

can

reasonably expect to have income of more than $5,000

“Modified gross income” used to calculate the Family Size

from which no Kentucky income tax will be withheld may be

Tax Credit means the greater of:

required to make estimated tax payments as required by KRS

141.300. Individuals who do not prepay at least 70 percent

Federal adjusted gross income adjusted to include

of their income tax liability for the year will be subject to a

interest income derived from municipal bonds (non-

penalty for underpayment of estimated tax. The prepayments

Kentucky) and lump-sum pension distributions not

may be made through withholding, a credit forward from the

included in federal adjusted gross income;

previous year’s income tax return or estimated tax payments.

The worksheet on the reverse should be used to determine

Kentucky adjusted gross income adjusted to include

the amount which should be paid through estimated tax

lump-sum pension distributions not included in federal

payments. If the amount of estimated tax for the year is $500

adjusted gross income.

or less, no payment is required.

PASS-THROUGH ENTITIES AND INDIVIDUAL OWNERS OF

WHEN TO PAY—Taxpayers may pay the full amount of

DISREGARDED SINGLE MEMBER LLCs—For taxable years

estimated tax in one payment on the earliest applicable due

beginning on or after January 1, 2007, all pass-through

date, or they may pay in installments. Installments for calendar

entities and individual owners of disregarded single member

year 2012 are due April 17, June 15, September 17, 2012, and

LLCs that file on Schedules C, E or F for federal income tax

January 15, 2013. Any credit from a 2011 income tax return

purposes will be treated the same for Kentucky income tax

should be applied to the amount owed before any payments

purposes as they are treated for federal income tax purposes

are made. Installment payments should not be made until

except for the differences between Kentucky law and federal

the amount of the credit has been used. A voucher should

law. Individuals with income from pass-through entities or

be filed only when a payment is required.

disregarded single member LLCs that file Schedule C, E or

F for federal income tax purposes may be required to make

IF INCOME CHANGES—Due to changes in sources or

individual estimated tax payments.

amounts of income during the year, a taxpayer who is not

FARM INCOME—Taxpayers with income from farming are

required to pay estimated tax at the beginning of the year

not required to make installment payments if they meet the

may be required to pay during the year. A taxpayer may also

following criteria: (1) two-thirds of gross income is from

be required to recompute the estimated tax and to adjust

farming; and (2) the entire amount of estimated tax is paid on

the amount of the installments during the year as a result

or before January 15, 2013; or (3) the 2012 income tax return

of changes in sources or amounts of income. Whenever the

is filed and total tax is paid on or before March 1, 2013.

initial estimate is required or the change occurs, a taxpayer

electing to pay in installments must pay the total amount of

penalty

equal

PENALTY FOR UNDERPAYMENT—A

tax due in equal amounts on the remaining due dates.

10 percent of any underpayment may be assessed. The

underpayment is calculated by taking 70 percent of the amount

Period When

on Form 740, Line 26 (income tax liability) and subtracting

Estimate Required

Number of

taxes prepaid through a credit forward, withholding,

or Change Occurs

Due Date

Equal Installments

estimated tax payments and refundable credits. Minimum

January 1–April 1

April 17, 2012

penalty is $25.

April 2–June 1

June 15, 2012

HOW TO USE ESTIMATED TAX VOUCHERS—Enter

your

June 2–September 1

September 17, 2012

name, address and Social Security number(s) in the spaces

provided. In the payment block, enter the amount of payment.

September 2–December 31*

January 15, 2013

Do not enter amounts paid through a credit from a previous

*If the change occurs after September 1, 2012, the voucher is not

year.

required if the 2012 Kentucky income tax return is filed and the tax

HOW TO PAY—Make check payable to Kentucky State

shown to be due is paid on or before January 31, 2013.

Treasurer. Mail the check with the voucher to: Kentucky

Department of Revenue, Frankfort, KY 40620-0009. To ensure

Failure to make required estimated installments by the

accurate crediting to your account, you must send the

specified dates may result in interest due.

voucher with your check. Please write your Social Security

number(s) on the face of your check. If you wish to mail your

FISCAL YEAR FILERS—If you pay tax for a fiscal year instead

first installment with Form 740, please prepare a separate

of a calendar year, your due date is the 15th day of the fourth,

check for the amount shown on the voucher and include the

sixth and ninth months of your fiscal year and the 15th day

voucher marked “Installment 1. ”

of the first month of the following fiscal year.

Form 42a740-S4 - Instructions For Filing Estimated Tax Vouchers - 2012

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