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Details:
• Standard Deduction:The Standard Deduction for 2011 tax year has been increased to $2,240.00.
• New Credit:Section A contains 2 new credit lines creating 4 additional fields added to the layouts to incorporate changes to these forms. Also, the New Home Tax Credit has been removed from Page 1 of Form 740.
Form 740, Section A has two new non-refundable credits. Line 2 is the new Kentucky Small Business Investment Credit. Line 20 is the new ENDOW Kentucky Credit.
• Small Business Development Credit:For taxable years beginning after December 31, 2010, a small business may be eligible for a nonrefundable credit of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or 141.040, and the limited liability entity tax imposed under KRS 141.0401.
• Endow Kentucky Tax Credit:Effective for taxable years beginning on or after Jan. 1, 2011, the Endow Kentucky Tax Credit was created to encourage donations to community foundations across the Commonwealth.
• Form 8453-K has changed to Form 8879-K.KRS 141.382 was created to provide a refundable tax credit against the taxes imposed by KRS 136.505, KRS 141.020 or 141.040 and KRS 141.0401 for qualified rehabilitation expenses incurred by the taxpayer and used for substantial rehabilitation to a certified historic structure meeting the requirements of KRS 171.396 and 171.397. To qualify as a refundable credit, an application must be received by the Kentucky Heritage Council for preliminary approval on or after April 30, 2010, and the taxpayer must make an election as provided by KRS 171.397(2)(b)
• Form 8948-K (Preparer Explanation For Not Filing Electronically) has been created due to the Kentucky e-file mandate passed in 2010.
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