Kentucky 740Ez Form – Fill Out and Use

Attach Form W-2, Wage and Tax Statement(s) and Payment Here

FAMILY				POLITICAL	Designating $2 will not change your refund or tax due. Mark an X in						1	2				3
	1
				PARTY
SIZE
					Box 1 for Democratic, Box 2 for Republican, or Box 3 for No Designation.
				FUND
INCOME	1.		Enter federal Adjusted Gross Income from Form 1040EZ, line 4.
			This is your Kentucky Modified Gross Income (If $14,404 or less,
			you may qualify for the Family Size Tax Credit. See instructions on page 2.)				1	•								00
	2.		Standard deduction		................................................................................................................		2					2,210				00
	3.		Subtract line 2 from line 1. This is your Taxable Income				3									00
TAX	4.		Enter tax from Tax Table or Tax Computation for amount on line 3				4									00
	5.		Personal tax credit				5					20				00
	6.		Subtract line 5 from line 4. If line 5 is larger than line 4, enter zero				6									00
	7.		Multiply line 6 by the Family Size Tax Credit for Family Size 1
			decimal amount __ . __ __ ( __ __ __ %) and enter here (see instructions on page 2)				7	•								00
	8.		Subtract line 7 from line 6. This is your Income Tax Liability				8									00
	9.		Enter Kentucky Use Tax				9	•								00
	10.		Add lines 8 and 9. This is your Total Tax Liability				10	•								00
	11.		Enter Kentucky Income Tax withheld as shown on ATTACHED
			2010 Form W-2, Wage and Tax Statement(s)				11	•								00
	12.		If line 11 is larger than line 10, enter AMOUNT OVERPAID (see instructions)				12									00
			Fund Contributions; See instructions			➤ (ENTER AMOUNT(S) CHECKED)

13.a Nature and Wildlife Fund

			$10		$25		$50			Other				....................	•
	b Child Victims’ Trust Fund
							$50			Other					•
			$10		$25									....................
	c Veterans’ Program Trust Fund														•
							$50			Other
			$10		$25									....................
	d Breast Cancer Research/Education Trust														•
			$10		$25		$50			Other			....................
14.	Add amounts contributed on lines 13a, 13b, 13c and 13d														14
																								00
15.	Subtract line 14 from line 12. Amount to be refunded to you																	REFUND		15 •				00

16.If line 10 is larger than line 11, enter amount you owe. Enclose check payable to Kentucky State Treasurer. Write your Social

Security number and “KY Income Tax—2010” on the check

OWE 16 •

00

I, the undersigned, declare under penalties of perjury that I have examined this return, including any accompanying statements, and to the best of my knowledge

and belief, it is true, correct and complete.

Your Signature				Telephone Number (daytime)			Date Signed
Typed or Printed Name of Preparer Other Than Taxpayer				I.D. Number of Preparer			Date
Mail to:
		REFUNDS	Kentucky Department of Revenue, Frankfort, KY 40618-0006.						OFFICIAL USE ONLY
	PAYMENTS		Kentucky Department of Revenue, Frankfort, KY 40619-0008.							PWR

Who May Use Form 740-EZ—You may use Form 740-EZ if all five of the following apply:

you were a Kentucky resident for the entire year;

you are filing federal Form 1040EZ;

your filing status is single;

you do not claim additional credits for being age 65 or over, blind, or a member of the Kentucky National Guard at the end of 2010; and

you had only wages, salaries, tips, unemployment compensation, taxable scholarship or fellowship grants, and your taxable interest was $1,500 or less.

If you do not meet all five of the above requirements, see Form 740 instructions.

When to File—The 2010 Form 740-EZ must be postmarked no later than April 18, 2011, to avoid penalties and interest.

COMPLETING FORM 740-EZ—For more information, see the General Instructions. You may also contact the Department of Revenue in Frankfort at (502) 564-4581 or a Kentucky Taxpayer Service Center.

Please print your numbers inside the boxes with black ink. Do not use dollar signs.

Enter your Social Security number on your return. To protect your privacy, your Social Security number is not printed on the peel-off label that came in the mail.

Political Party Fund Designation—You may designate $2 of your taxes to either the Democratic or Republican party if you have a tax liability of at least $2.

LINE-BY-LINE INSTRUCTIONS

Line 1—Enter federal adjusted gross income from Form 1040EZ, Line 4. (Do not confuse federal adjusted gross income with federal taxable income shown on the federal return.) If $14,404 or less, see instructions for Line 7 and enter the decimal amount on Line 7.

If you are not required to file a federal income tax return, enter the total income from sources within and without Kentucky.

Line 2—The standard deduction of $2,210 has been preprinted. If your itemized deductions exceed $2,210, it will benefit you to file Form 740 and itemize your deductions on Schedule A.

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

If taxable income is:

Tax before credit is:

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

$3,001	—	$4,000	3% of taxable income minus $30
$4,001	—	$5,000	4% of taxable income minus $70
$5,001	—	$8,000	5% of taxable income minus $120
$8,001	— $75,000		5.8% of taxable income minus $184
$75,001 and up			6% of taxable income minus $334

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

Note: An optional tax table is available online at www.revenue.ky.gov or by calling the Department of Revenue, (502) 564-4581.

Line 7, Family SizeTax Credit—For single persons eligible to file Form 740-EZ, Kentucky family size is one and Kentucky modified gross income is equal to federal adjusted gross income. A family size tax credit is allowed for single persons whose Kentucky modified gross income is not over $14,404. If over $14,404, you do not qualify for this tax credit. Skip Line 7.

Enter in the space provided the decimal amount from the following table.

	Family Size		Percent of Tax
	One		as Family Size Tax Credit
If the Kentucky modified			Enter decimal amount
gross income (Line 1) is:			on Line 7
	over	but not over
$	0	$10,830	1.00	(100%)
$	10,830	$11,263	0.90	(90%)
$	11,263	$11,696	0.80	(80%)
$	11,696	$12,130	0.70	(70%)
$	12,130	$12,563	0.60	(60%)
$	12,563	$12,996	0.50	(50%)
$	12,996	$13,429	0.40	(40%)
$	13,429	$13,754	0.30	(30%)
$	13,754	$14,079	0.20	(20%)
$	14,079	$14,404	0.10	(10%)

Multiply amount on Line 6 by decimal amount. Enter result on Line 7. This is your Family Size Tax Credit.

Line 9, Kentucky UseTax—Enter 6 percent of out-of-state purchases for use in Kentucky on which sales tax was not charged. Include Internet and catalog purchases, subscriptions, furniture, carpet, boats, etc.

Line 11, Kentucky Tax Withheld—Enter the amount of Kentucky income tax withheld as shown on your 2010 wage and tax statements. These statements must be attached to your return. Make sure you file the copy designated to be filed with your state return. Do not include amounts withheld by your employer for other states. Amounts withheld in other states cannot be credited to your Kentucky income tax. Local government occupational, license or income taxes must not be included on Line 11.

Line 12—If the amount on Line 11 (Kentucky Tax Withheld) is more than the amount on Line 10 (Total Tax Liability), you have an overpayment and are due a refund. Subtract Line 10 from Line 11, and enter the difference on Line 12 as an overpayment. However, if your Total Tax Liability on Line 10 is larger than Line 11, you owe additional tax. Subtract Line 11 from Line 10 and enter on Line 16.

Line 13—If you show an overpayment on Line 12, you may contribute to: (a) the Nature and Wildlife Fund, (b) the Child Victims’ Trust Fund, (c) the Veterans’ Program Trust Fund and/ or (d) the Breast Cancer Research and Education Trust Fund. Donations are voluntary and amounts donated will be deducted from your refund.

Enter the amount(s) you wish to contribute on Lines 13(a), 13(b), 13(c) and/or 13(d). The total of these amounts cannot exceed the amount of the overpayment.

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. On the face of the check, please write “KY Income Tax–2010” and your Social Security number.

Underpayment of Estimated Tax—If the amount owed is more 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 tax. The minimum penalty is $25. The amount of the penalty may be calculated on Form 2210-K, which may be obtained from the Department of Revenue.

Interest and Penalties—File your return and pay any additional tax due by April 18, 2011 to avoid interest and penalties. See the General Instructions or contact the Department of Revenue for additional information.

Note: Penalties but not interest may be reduced or waived if reasonable cause can be shown.

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