Kentucky does not conform to the federal exclusion of unemployment income for tax year 2020.
What if I already filed before the federal exclusion?
If you already filed with unemployment included on return, you do not need to take any additional action with respect to the Kentucky return.
What if I didn't file yet and the unemployment is being excluded from the federal return?
If you have not yet filed, the program will automatically add the unemployment exclusion back to your return on line 6 of the 740 Form.
How do I add the unemployment back to my state return?
This is automatically added back to the Resident return.
To add the income back to the part-year return:
- State Section
- Income Subject to Tax
- Enter the Kentucky portion of Unemployment Compensation
What if I have to add the amount back manually on my Resident return?
Resident Return:
- State Section
- Additions to Federal Adjusted Gross Income
- Enter a Description of Other Additions Amount
- Enter the other Additions Amount