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42A740-S4 (10-16)
INSTRUCTIONS FOR FILING
Commonwealth of Kentucky
DEPARTMENT OF REVENUE
ESTIMATED TAX VOUCHERS 2017
WHAT’S NEW FOR 2017—The standard deduction will increase FAMILY SIZE TAX CREDIT—The Family Size Tax Credit is based
to $2,480.00 for 2017. Individuals who electronically file their on modified gross income (MGI) and the size of the family. If
return will now have the option to have their estimated tax your total MGI is $32,319 or less you may qualify for Kentucky
payment(s) debited from their bank account. Family Size Tax Credit.
“Modified gross income” used to calculate the Family Size Tax
WHO MUST MAKE PAYMENTS— Individuals who can
Credit means the greater of:
reasonably expect to have income of more than $5,000 from
which no Kentucky income tax will be withheld may be required Federal adjusted gross income adjusted to include interest
to make estimated tax payments as required by KRS 141.300. income derived from municipal bonds (non-Kentucky) and
Individuals who do not prepay at least 70 percent of their lump-sum pension distributions not included in federal
income tax liability for the year will be subject to a penalty for adjusted gross income;
underpayment of estimated tax. The prepayments may be made or
through withholding, a credit forward from the previous year’s
Kentucky adjusted gross income adjusted to include
income tax return or estimated tax payments. The worksheet
lump-sum pension distributions not included in federal
on the reverse should be used to determine the amount which
adjusted gross income.
should be paid through estimated tax payments. If the amount
of estimated tax for the year is $500 or less, no payment is PASS-THROUGH ENTITIES AND INDIVIDUAL OWNERS OF
required. DISREGARDED SINGLE MEMBER LLCs—For taxable years
beginning on or after January 1, 2007, all pass-through entities
WHEN TO PAY—Taxpayers may pay the full amount of estimated and individual owners of disregarded single member LLCs that
tax in one payment on the earliest applicable due date, or they file on Schedules C, E or F for federal income tax purposes will be
may pay in installments. Installments for calendar year 2017 treated the same for Kentucky income tax purposes as they are
are due April 18, June 15, September 15, 2017, and January treated for federal income tax purposes except for the differences
16, 2018. Any credit from a 2016 income tax return should be between Kentucky law and federal law. Individuals with income
applied to the amount owed before any payments are made. from pass-through entities or disregarded single member LLCs
Installment payments should not be made until the amount of that file Schedule C, E or F for federal income tax purposes may
the credit has been used. A voucher should be filed only when be required to make individual estimated tax payments.
a payment is required.
FARM INCOME—Taxpayers with income from farming are not
IF INCOME CHANGES—Due to changes in sources or amounts required to make installment payments if they meet the following
of income during the year, a taxpayer who is not required to criteria: (1) two-thirds of gross income is from farming; and (2)
pay estimated tax at the beginning of the year may be required the entire amount of estimated tax is paid on or before January
to pay during the year. A taxpayer may also be required to 16, 2018; or (3) the 2017 income tax return is filed and total tax
recompute the estimated tax and to adjust the amount of the is paid on or before March 1, 2018.
installments during the year as a result of changes in sources PENALTY FOR UNDERPAYMENT—A penalty equal to 10 percent
or amounts of income. Whenever the initial estimate is required of any underpayment may be assessed. The underpayment is
or the change occurs, a taxpayer electing to pay in installments calculated by taking 70 percent of the amount on Form 740, Line
must pay the total amount of tax due in equal amounts on the 26 (income tax liability) and subtracting taxes prepaid through
remaining due dates. a credit forward, withholding, estimated tax payments and
Period When refundable credits. Minimum penalty is $25.
Estimate Required Number of
or Change Occurs Due Date Equal Installments HOW TO USE ESTIMATED TAX VOUCHERS— Enter your
name, address and Social Security number(s) in the spaces
January 1–April 1 April 18, 2017 4 provided. In the payment block, enter the amount of payment. Do
not enter amounts paid through a credit from a previous year.
April 2–June 1 June 15, 2017 3
June 2–September 1 September 15, 2017 2 HOW TO PAY—Make check payable to Kentucky State
Treasurer. Mail the check with the voucher to: Kentucky
September 2–December 31* January 16, 2018 1 Department of Revenue, Frankfort, KY 40620-0009. To ensure
*If the change occurs after September 1, 2017, the voucher is not accurate crediting to your account, you must send the voucher
required if the 2017 Kentucky income tax return is filed and the tax with your check. Please write your Social Security number(s) on
shown to be due is paid on or before January 31, 2018. the face of your check. If you wish to mail your first installment
with Form 740, please prepare a separate check for the amount
Failure to make required estimated installments by the specified shown on the voucher and include the voucher marked
dates may result in interest due. “Installment 1.” If you file electronically you can now elect to
have your estimated tax payments debited from your bank
FISCAL YEAR FILERS—If you pay tax for a fiscal year instead account; see Form 8879-K for additional information. You may
of a calendar year, your due date is the 15th day of the fourth, authorize the Kentucky Department of Revenue to debit up to
sixth and ninth months of your fiscal year and the 15th day of all four of your installments on the dates due. This option must
the first month of the following fiscal year. be initiated at the time of filing.
