E-File Kentucky Taxes and Get a Fast Tax Refund

Kentucky requires people who reside and work there to file taxes in the commonwealth under certain circumstances. In essence, some people must file while others are exempt from having to claim their income. Individuals who are exempt from filing a state tax return are those whose incomes fall below the amount stipulated by the commonwealth. For example, a person whose modified gross income is $15,060 or less does not have to file a return. A person whose household size is two and earns $20,440 a year or less is likewise exempt. A household of three can earn up to $25,820, while a household of four or more can earn $31,200 or less and avoid having to file a tax return. The state also does not require some senior citizens to file taxes.

A married couple who are both over the age of 65 and has an adjusted gross income, or AGI, of $5,160 or less per year does not have to file. If only one spouse is 65 and over, the couple can have an AGI of $4,160 or less per year. If both people are younger than 65, they can earn $3,160 for an AGI and avoid filing. A single person younger than 65 can have an AGI of $3,160 per year and not be required to file a state tax return. Special allowances are made for blind residents as well. Someone who is 65 and older and blind can have an AGI of $5,160, while a blind person younger than 65 can have an AGI of $4,160 or less without having to file.

Self-Employed Must File State Taxes

All commonwealth residents who are self-employed must file state income tax returns regardless of how much they earn. However, people who live or work in the state can fill out a Form K-4E with their employers if they believe that they will earn less than the amount of income required to pay taxes.

If a taxpayer is filing for an extension of time to pay federal income taxes, they are not required to file for a separate extension as long as they attach a federal Form for an Automatic Extension and/or Form 2688 (approved extension) to their Kentucky return.

Paying Taxes in the Commonwealth

Those individuals who must pay taxes and owe the state a balance are required to fill out Form 740-V and send that form, along with a paper check with their Social Security number and tax year written on it, to the Commonwealth's department of revenue. They can also pay their balance online on the state's revenue department website. You will be taxed 2% a month per tax return that is late. The maximum penalty is 20% of the total tax due.

If a taxpayer expects to have an income of more than $5000 annually, and no income tax is being withheld, they may be required to make quarterly payments to prepay some of their income tax liability.

Online Lookup

If you are seeking to track your refund for the current year only, you can visit the Department of Revenue website at: www.revenue.ky.gov/refund.htm

Amended Returns and Year Refunds

Taxpayers in the commonwealth can also amend their filings during the year by filling out a revised tax return for the appropriate tax year. The state processes those returns within four to six months. If people received a refund from the state the previous year, they will receive a Form 1099G prior to filing taxes the current year. The form reminds taxpayers of the amount and if it was applied to an outstanding debt.

Frequently Asked Questions

What is Kentucky's income tax rate?
The state uses a flat income tax rate of 4% for all taxpayers, regardless of income level.

Does Kentucky tax Social Security benefits?
No, Kentucky fully exempts Social Security benefits from state income tax.

When are Iowa state taxes due?
Iowa state income taxes are due on April 30, which is later than the federal deadline of April 15.

Do I have to file a Kentucky tax return if I'm self-employed?
Yes, all residents who are self-employed must file a state return regardless of how much they earn.

Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.