Kentucky allows pension income (including annuities, IRA accounts, 401(k) and similar deferred compensation plans, death benefits, etc,) paid under a written retirement plan to be excluded from income on the Kentucky return. Report only pension income received while a resident of Kentucky.
How much can I exclude from income?
For 2020 the exclusion amount is $31,110 or the total compensation, whichever amount is less.
The subtraction is figured for each taxpayer listed on the return. Please enter the amounts in the corresponding boxes to correctly calculate the return.
This entry can be made by following the steps below:
- State Section
- Edit Kentucky
- Retirement Income Schedule P Part 1 Only
See also Is my military pension/retirement income taxable to Kentucky?