Kentucky Income Gap Tax Credit

The credit is limited to the amount of kentucky tax savings had the income reported to the other state been omitted or the amount of tax paid to the other state whichever is less.

Kentucky income gap tax credit. Jim wayne and others for the past several legislative sessions. 067 household and dependent care service credit. Multiply tax from form 740 or 740 np line 19 by the applicable family size tax credit percentage and enter on form 740 or 740 np. This credit is only available to those that are eligible for the family size tax credit.

This is your. This credit is only available to taxpayers who are eligible to take the family size tax credit and have a family size of three or less. Family size tax year 2019 one two is over is not over 16 910 16 910 17 586 17 586 qig 263 18 263 18 939 1 g 939 19 616 20 292 20 292 20968 21 476. For the family size tax credit on form 740 or 740 np line 21 and you will enter the income gap credit on form 740 or 740 np line 25.

068 definitions determination of tax credits under krs 154 20 258. Taxpayers now have 180 days to submit an amended income tax return to kentucky from the date the federal audit final determination is issued by. In kentucky the income inequality that exists between our poorest and wealthiest residents is magnified by the structure of our tax system. Income gap tax credit this credit is only available to taxpayers who are eligible to take the family size tax credit and have a family size of three or less.

If total modified gross income is 34 248 or less for 2019 you may qualify for the kentucky family size tax credit. Thanks to the new tax law enacted by the 2018 general. Kentucky statutes chapter 141 141 066 kentucky statutes 141 066 definitions nonrefundable low income family size and income gap tax credits. 066 definitions nonrefundable low income family size and income gap tax credits.

For tax years 2019 and 2020 an income tax gap credit was created in addition to the family size tax credit. Family size tax credit. Krs 141 066 income gap tax credit. You must include a copy of the other state s return with your filed form 740 or form 740 np to claim this credit.

A provision establishing a state earned income tax credit is part of the kentucky forward plan that has been introduced by rep.