Yes. Kentucky allows taxpayers to itemize deductions on the Kentucky return even if the federal return uses the standard deduction.
To claim Kentucky itemized deductions, enter the itemized deduction information in the federal program. The applicable amounts will carry to the Kentucky return.
Program Entry
Kentucky → Itemized Deductions
Force Standard or Itemized Deductions
Use the Force Standard or Itemized Deductions option to override the deduction method selected by the program.
This option may be used when the taxpayer wants to force the Kentucky return to use either the standard deduction or itemized deductions.
Qualified Artistic Charitable Contributions Deduction
Kentucky allows a deduction for Qualified Artistic Charitable Contributions of any literary, musical, artistic, or scholarly composition, letter or memorandum, or similar property.
Enter the amount equal to the fair market value of the contributed property on the date it was donated, up to the taxpayer's adjusted gross income for the tax year.
What if We Are Married Filing Separately?
Married taxpayers who are filing separate returns or a combined return but using only one Schedule A must divide the itemized deductions.
If one spouse is not required to file a Kentucky return, total deductions may be divided between the spouses based on the percentage of each spouse's income to total income, or separate Schedules A may be filed.
Taxpayers filing Married Filing Separately must claim the same deduction method, either:
- Standard deduction, or
- Itemized deductions
Exception: This rule does not apply if the spouses lived apart for the entire tax year.
Additional Information
- Kentucky itemized deductions are calculated separately from federal itemized deductions.
- A taxpayer may claim Kentucky itemized deductions even if the federal return claims the standard deduction.
- Documentation supporting itemized deductions should be retained with the taxpayer's records.
- Kentucky Department of Revenue: Resident Instructions and Form 740 Schedule A Instructions