INSTRUCTIONS: KENTUCKY INDIVIDUAL INCOME TAX RETURN (Form 740)

Full-year residents of Kentucky should file their state income taxes using a form 740. This document can be obtained from the website of the Kentucky Department of Revenue.

Kentucky Individual Income Tax Return 740 Step 1: If not filing on a calendar year basis, enter the beginning and ending dates of your fiscal year.

Kentucky Individual Income Tax Return 740 Step 2: If filing jointly, enter your spouse's Social Security number in box A and yours in box B. Otherwise, just enter yours in box B. Enter both names or just yours as applicable in the box below, as well as your complete mailing address.

Kentucky Individual Income Tax Return 740 Step 3: Indicate your filing status with a check mark.

Kentucky Individual Income Tax Return 740 Step 4: Indicate with a check mark whether you or your spouse wish to donate $2 to a political party fund. You may donate to a Republican or Democratic fund or donate with no designation.

Kentucky Individual Income Tax Return 740 Step 5: Throughout the form, two columns are provided. Column A is only for those who are filing jointly to document their spouse's income, while column B is for the person filing the form, whether filing jointly or singly. Lines 5 through 11 provide instructions for computing your taxable income.

Kentucky Individual Income Tax Return 740 Step 6: Lines 12 through 26 compute your income tax liability. Note that in order to complete line 17, which concerns personal tax credits, you must first complete Section B on the third page, and transfer the results from lines 4A and 4B there. Additionally, if you are claiming business incentive and related tax credits, you must complete Schedule A and transfer the results to line 15.

Kentucky Individual Income Tax Return 740 Step 7: Lines 27 through 29 adjust your state tax liability by adding use tax on any items purchased online.

Kentucky Individual Income Tax Return 740 Step 8: Complete lines 30 through 43 as directed in order to calculate your adjusted tax liability balance due or the refund you are owed by the state.

Kentucky Individual Income Tax Return 740 Step 9: Attach a copy of your federal 1040 return if you received farm, business or rental income or loss. Sign and date the form.