Kentucky Income Tax Forms Rates & Services

The Office of Taxpayer Ombudsman ensures strict adherence to the Taxpayer's Bill of Rights. When a problem arises between a citizen and the Department of Revenue, the Taxpayer Ombudsman will assist in finding a resolution to the problem and make sure that it is handled professionally, fairly and with impartiality.

Kentucky’s standard deduction for individual income tax increases to $1,970 for the 2006 tax year. Taxpayers who do not itemize deductions on their Kentucky taxes can claim this standard deduction.

Kentucky’s individual income tax pension exclusion will remain at $41,110 for the 2006 tax year. Retirees who make quarterly tax payments should take consider this pension exclusion when calculating their quarterly payments for 2006.

Military Family Tax Relief Act of 2003 will allow Kentucky National Guard and Reserve members who deducted expenses as a miscellaneous deduction to possibly benefit by filing an amended return. The following federal provisions now apply to Kentucky:

• the excludable amount of military death benefits (occurring after Sept. 11, 2001) is increased from $3,000 to $12,000;
• an above-the-line deduction for overnight transportation, meals and lodging expenses of National Guard and Reserve members who must travel away from home more than 100 miles and who must stay overnight to attend National Guard and Reserve meetings (beginning after 2002);
• treatment of service academy appointments as scholarships for purposes of qualified tuition programs and Coverdell Education Savings Accounts;
• an exclusion for amounts received by certain employees and members of the armed forces under the federal Department of Defense Homeowners Assistance Program (effective for payments made after Nov. 11, 2003); and
• the five-year test period for ownership and use of a residence to be suspended for up to 10 years in excluding gain from the sale or exchange of a principle residence, if during the period of the suspension the individual or the individual’s spouse is serving on qualified official extended duty in the uniformed services or the Foreign Service of the United States (effective for sales or exchanges made after May 6, 1997).

Other Helpful Links:
Kentucky Department of Revenue: http://revenue.ky.gov/
Kentucky Department of Revenue Live Tax Help: http://revenue.ky.gov/livehelp.htm
Kentucky Tax Forms: http://revenue.ky.gov/forms/
Internal Revenue Service: http://www.irs.gov/

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