How Do I Complete the Kentucky Tax Section?

The Kentucky Tax section is used to report Kentucky use tax, interest, penalties, and Schedule J information for farm income averaging. Kentucky income tax is automatically calculated based on information entered throughout the return. Additional taxes, interest, and penalties entered in this section are added separately to the taxpayer's total tax liability.

Program Entry

Kentucky > Tax Section

When Will This Section Appear?

Use the Kentucky Tax section when the taxpayer needs to:

• Report Kentucky use tax.
• Enter interest due on unpaid Kentucky tax.
• Enter a late payment penalty.
• Enter a late filing penalty.
• Access Schedule J for farm income averaging.

What Information Is Required?

Use Tax

Enter the total use tax due in the Use Tax field.

Kentucky residents must report use tax on purchases of tangible personal property when Kentucky sales tax was not charged at the time of purchase.

The use tax rate is 6% of the purchase price of taxable items purchased for use, storage, or consumption in Kentucky.

Examples of purchases that may be subject to use tax include:

• Internet purchases
• Mail-order or catalog purchases
• Subscriptions
• Furniture
• Carpet
• Boats
• Other taxable tangible personal property purchased outside Kentucky for use in Kentucky

Interest

Enter any interest due on unpaid Kentucky tax in the Interest field.

Late Payment Penalty

Enter any penalty assessed for paying Kentucky tax after the due date in the Late Payment Penalty field.

Late Filing Penalty

Enter any penalty assessed for filing the Kentucky return after the due date in the Late Filing Penalty field.

Schedule J - Farm Income Averaging

Schedule J allows qualifying taxpayers to average all or a portion of current-year farm income over the previous three tax years when calculating Kentucky income tax.

For additional information about completing Schedule J, see the Kentucky Schedule J article.