Kentucky has made the following changes to the tax laws for the 2022 tax year:
What changes have been made to deductions?
- The Standard Deduction for 2022 is $2,770.
What changes were made to state tax credits?
- Family Size Tax Credit - The 2022 threshold amount is $13,5900 for a family of one, $18,310 for a size of two, $23,030 for a size of three, and $27,750 for a family size of four or more people.
- Refundable Film Industry Tax Credit - According to Kentucky's instructions, "for taxable years beginning on or after January 1, 2022, or applications approved on or after January 1, 2022, a refundable credit against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 is available for taxpayers who have received notification from the Kentucky Cabinet for Economic Development that the approved company has satisfied all requirements of KRS 154.61-020 and KRS 154.61-030. Attach certification to the return claiming the credit. KRS 141.383."
- Refundable Development Area Tax Credit - Taxpayers who owned "residential property" on January 1, 2021, that was located in the West End Development area in Louisville may be entitled to this tax credit. The credit will be equal to the amount in which the property tax timely paid on the residential property exceeds the amount of property tax assessed on that residential property on January 1, 2021.
- Refundable Decontamination Credit - For tax years 2022-2031, taxpayers who make a qualifying expenditure at a qualifying decontamination property will be allowed this refundable credit against the taxes imposed by KRS 141.020 or 141.040.
For more information, please see Kentucky's instructions.