Instructions For Forms 740 And 740-Ez - Kentucky Individual Income Tax Return - 2011 Page 7
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30Filing Status 2, Married Filing Separately on This Combined
federal adjusted gross income. For a list of differences, see
Return—Use this filing status to report your incomes in-
the Federal/Kentucky Individual Income Tax Differences chart
dividually but on only one tax form. You do this by filling
and the line-by-line instructions.
in both Columns A and B. You may file separately on this
LINE 6—Additions to Federal Adjusted Gross Income—Enter
combined return regardless of whether you filed jointly or
amount from Schedule M, Part I, Line 8.
separately for federal purposes if both you and your spouse
had income. This filing status usually results in a lower tax
LINE 8—Subtractions from Federal Adjusted Gross
than Filing Status 3.
Income—Enter amount from Schedule M, Part II, Line 20.
Each spouse must claim his or her own income and deduc-
LINE 9—Kentucky Adjusted Gross Income—Subtract Line 8
tions. The total of Line 5, Columns A and B, must equal your
from Line 7. This is your Kentucky Adjusted Gross Income.
and your spouse’s federal adjusted gross income.
Taxable Income
Filing Status 3, Married Filing Joint Return—Use this filing
status if you and your spouse choose to file a joint return
even if one spouse had no income. Jointly means that you
LINE 10, Deductions—Itemizers, complete Schedule A and
and your spouse add your incomes together and report in
enter allowable deductions on Line 10. If one spouse itemizes
Column B. If both you and your spouse have income, it may
deductions, the other must itemize. See specific instructions
be to your benefit to use Filing Status 2.
for Schedule A.
Filing Status 4, Married Filing Separate Returns—If using this
Nonitemizers, enter the standard deduction of $2,240. If
filing status, you and your spouse must file two separate tax
married filing separately on a combined return, enter $2,240
forms. The husband’s income is reported on one tax form, the
in both Columns A and B. If filing a joint return, only one
wife’s on the other. When filing separate returns, the name
$2,240 standard deduction is allowed.
and Social Security number of each spouse must be entered
on both returns. Enter the spouse’s Social Security number
LINE 11—Subtract Line 10 from Line 9. This is your Taxable
in the block provided, and enter the name on Line 4.
Income.
Tax
Adjusted Gross Income
LINE 12—Determining Your Tax
Tax Table or Computation—An optional tax table is located
elsewhere in this publication for your convenience. You may
LINE 5, Federal Adjusted Gross Income
use this table whether or not you itemize. Married taxpayers
Enter the total amount of your federal adjusted gross income
filing separately on a combined return may use the tax table
from your federal income tax return in Column B if Filing
or the tax rate schedule, or one spouse may use the tax table
Status 1, 3 or 4 is used. Use Column A only when entering
and the other the tax rate schedule. If you choose not to use
your spouse’s income on a combined return (Filing Status 2).
the tax table, compute your tax using the tax rate schedule
When using Filing Status 2, Columns A and B, Line 5, must
below.
equal your federal adjusted gross income. (Do not confuse
federal adjusted gross income with federal taxable income
Tax Rate Schedule
shown on the federal return.)
If taxable amount is:
Tax is:
Where husband and wife have filed a joint return for federal
income tax purposes and have not elected to file a joint
$3,000 or less ................. 2% of taxable amount
Kentucky income tax return, each spouse must claim his or
over $3,000
her own income and deductions.
but not over $4,000 .... $60 plus 3% of amount over $3,000
If you are not required to file a federal income tax return, enter
over $4,000
on Line 5 the total of wages, salaries, tips, fees, commissions,
but not over $5,000 .... $90 plus 4% of amount over $4,000
bonuses, other payments for personal services, taxable
over $5,000
scholarships and fellowships, taxable interest and dividends,
but not over $8,000 .... $130 plus 5% of amount over $5,000
trade or business income, unemployment compensation and
all other income from sources within and without Kentucky
over $8,000
including amounts not reported on attached wage and tax
but not over $75,000 .. $280 plus 5.8% of amount over $8,000
statements. If you have income not supported by a wage
over $75,000 ................... $4,166 plus 6% of amount over $75,000
and tax statement, attach a supporting schedule showing the
source and amount.
Farm Income Averaging, Schedule J—If you elect
farm income averaging on your federal return,
Determining Kentucky Adjusted Gross Income—Kentucky
you may also use this method for Kentucky. The
law requires that the individual income tax return begin
amount of income you may average is limited
with federal adjusted gross income and be adjusted for any
to the amount elected for federal purposes. Enter tax from
differences to arrive at Kentucky adjusted gross income.
Schedule J, Line 22, on Form 740, Line 12, and check the box
Schedule M is designed to make “additions to” federal
for “Schedule J. ” Attach completed Schedule J.
adjusted gross income and provides for “subtractions from”
9
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