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.

Estimated Tax Worksheet                                        (Keep for your records)                                                                                  2017
 1.  Enter your total estimated wages subject to withholding ..................................................................... 1
 2.  Enter your total estimated taxable income from sources with no withholding ................................... 2
 3.  Add lines 1 and 2 ....................................................................................................................................... 3
 4.  Enter estimated adjustments to income .................................................................................................. 4
 5.  Subtract line 4 from line 3. This is your ESTIMATED ADJUSTED GROSS INCOME ............................ 5
 6.  Enter estimated allowable itemized deductions or the standard deduction of $2,480.00 ................... 6
 7.  Subtract line 6 from line 5. Enter the difference here. This is your ESTIMATED NET INCOME .......... 7
 8.  Compute tax on estimated net income from line 7 using the tax rate schedule below.
     ENTER TAX HERE ..................................................................................................................................➤  8
     a.  If line 7 is $3,000 or less, your tax is 2% of line 7.
     b.  If line 7 is over $3,000 but not over $4,000, your tax is 3% of line 7, less $30.
     c.  If line 7 is over $4,000 but not over $5,000, your tax is 4% of line 7, less $70.
     d.  If line 7 is over $5,000 but not over $8,000, your tax is 5% of line 7, less $120.
     e.  If line 7 is over $8,000 but not over $75,000, your tax is 5.8% of line 7, less $184.
     f.  If line 7 is over $75,000, your tax is 6% of line 7, less $334.
 9.  Enter your tax credits ($10 for yourself and each dependent) ......................... 9
10.  Enter Family Size Tax Credit using percentage from worksheet below ..........10
11.  Enter Kentucky income tax to be withheld in 2017. Add lines 9, 10 and 11
     and enter total at right ........................................................................................11
12.  Subtract the total on line 11 from line 8. This is your Estimated Kentucky Income Tax
     for 2017. Enter here. If this amount is $500 or less, estimated tax payment is not required .............12
13.  Divide line 12 by 4. This is amount of each installment. Enter here and in Column B,
     lines 1 through 4 of Record of Estimated Tax Payments Schedule below ............................................13

Family Size Tax Credit (FSTC) is based on modified gross income (MGI) and the size of the family. Refer to page 1 for the 
definition of MGI. The 2016 table is provided for your convenience. 

  Family Size               One                                          Two                   Three                                 Four or More                       FSTC
   If MGI . . . is over     is not over                        is over  is not over   is over   is not over                          is over           is not over      Percentage is
                $  ---      $11,880                            $  ---   $16,020       $   ---   $20,160                              $  ---                     $24,300 100
                11,880 12,355  16,020 16,661  20,160 20,966  24,300 25,272                                                                                                    90
                12,355 12,830  16,661 17,302  20,966 21,773  25,272 26,244                                                                                                    80
                12,830 13,306  17,302 17,942  21,773 22,579  26,244 27,216                                                                                                    70
                13,306 13,781  17,942 18,583  22,579 23,386  27,216 28,188                                                                                                    60
                13,781 14,256  18,583 19,224  23,386 24,192  28,188 29,160                                                                                                    50
                14,256 14,731 19,224 19,865 24,192 24,998 29,160 30,132                                                                                                       40
                14,731 15,088  19,865 20,345  24,998 25,603  30,132 30,861                                                                                                    30
           2016
                15,088 15,444  20,345 20,826  25,603 26,208  30,861 31,590                                                                                                    20
                15,444 15,800 20,826 21,307 26,208 26,813 31,590 32,319                                                                                                       10
                15,800          ---                            21,307         ---     26,813                            ---          32,319                     ---           0 

These two schedules are for your records only and are not to be mailed to the Department of Revenue.
           AMENDED COMPUTATION SCHEDULE
  Use if your estimated tax substantially changes                                      RECORD OF ESTIMATED TAX PAYMENTS SCHEDULE
  after you make your first payment.
                                                                                       Col. A                           Col. B                        Col. C            Col. D
  1.  Enter amended estimated tax ..............
                                                                                                                                     2016 overpayment                   Amount to be
  2. Less:                                                                    Voucher                                   Amount       credit applied to                  paid with voucher.
     (a) Amount of 2016 overpayment                                           Number   Date                             from line 13 installment.                       Enter here and on
         credited to 2017 estimated tax ........                                                                        above.                        Subtract C        Vouchers 1-4.*
                                                                                                                                                      from B.
     (b) Payments made on 2017
         estimated tax to date .......................                        1
     (c) Total of Lines 2(a) and 2(b) ..............
                                                                              2
  3.  Unpaid balance (line 1 less line 2(c)) ...
  4.  Amount to be paid (line 3 divided by                                    3
     number of remaining installments                                         4
     less any unused 2016 overpayment                                                  Total
     credit). Enter here and in block on                                     *If zero or less, do not file a voucher. If amount credited exceeds amount of  install-
   voucher. ..................................................               ment enter excess in Column C of the next line.