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Kentucky State Subtractions

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Kentucky State Subtractions

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Line 9---
The taxable state income tax refund or credit reported on your federal return and included as income on Form 740, page 1, Line 5.

Line 10
Enter interest income from U.S. government bonds and securities. Do not include taxable interest from securities, such as FNMA (Fannie Mae), GNMA (Ginnie Mae) and FHLMC (Freddie Mac), which are merely guaranteed by the U.S. government.

Line 11, Pension Income Exclusion
The 2009 exclusion amount is 100 percent of taxable retirement benefi ts or $41,110, whichever
is less. All pension and retirement income paid under a written retirement plan (qualifi ed or unqualifi ed) is eligible for exclusion.
This includes pensions, annuities, IRA accounts, 401(k) and similar deferred compensation plans, income received from converting
a regular IRA to a Roth IRA, death benefi ts, disability retirement benefi ts and other similar accounts or plans.

Line 12
Enter Social Security and Social Security equivalent U.S. Railroad Retirement Board benefi ts included on Form 740, page 1, Line 5. These amounts are reported on federal Form 1040, Line 20(b) (Form 1040A, Line 14(b)).

Line 13, Longterm Care Insurance Premiums
Enter longû term care insurance premiums paid.   Do not claim as an itemized deduction.

Line 14, Health Insurance Premiums
Enter medical and dental insurance premiums paid for yourself, your spouseand your dependents. This deduction applies to premiumspaid with after-tax dollars. Note: You cannot deduct on Line 14 insurance premiums paid with pretax dollars (cafeteria plansand vouchers already excluded from wage income) becausethe premiums are not included in box 1 of your W-2 form(s).Do not include long-term care insurance premiums included on Schedule M, Line 13. You may not deduct premiums paidon your behalf (advance payments) and you must reduce the amount you paid by the amount of health coverage taxcredit. (See federal Form 8885.)

Line 15 Enter resident adjustment from Kentucky Schedule K-1.
Partners, beneficiaries of estates and trusts and S corporation shareholders, see Kentucky Schedule K-1instructions. Subtract the distributive share of net income from an S corporation subject to the franchise tax imposedunder KRS 136.505 or the capital stock tax imposed underKRS 136.300.

Line 16 Depreciation, Section 179 Deduction and Gains/Losses From Disposition of Assets
Important: Use Schedule M, Lines 4 and 16 only if you have elected for federal income tax purposes to take the 30 percent or the 50 percentspecial depreciation allowance or the increased Section 179 deduction for property placed in service after September10, 2001. A copy of the federal Form 4562 if fi led for federal income tax purposes must be submitted with Form 740 to verify that no adjustments are required.

Line 17 Enter Kentucky net operating loss calculated from prior years.
Keep worksheet detailing the net operating loss claimed with your records.

Line 18 Enter other subtractions from federal adjusted gross income not listed above (attach detailed schedule).
Include:
- income received from the tobacco quota buyout;
- income received as a result of the Master Tobacco Settlement Agreement, the secondary settlement fund referred to as ôPhase IIö;
- income received from the Tobacco Loss Assistance Program (TLAP);
- income of precinct workers for election training or working at election booths;
- capital gains on property taken by eminent domain;
- passive activity loss adjustment (see Form 8582-K and instructions);
- income of a child reported on the parentÆs return;
- artistic charitable contributions (if you do not itemize deductions);
- the federal


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Views: 654 Created on: Jun 15, 2013
Date updated: Aug 27, 2014

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