Are you a veteran or active duty service member in Kentucky? If so, you may be eligible for a partial tax exemption on your military pension and other types of retirement income. The state of Kentucky offers a variety of tax exemptions for military personnel, so it's important to understand the rules and regulations that apply to you. If you are an active duty service member, you can apply for an exemption excluding military payment when filing your Kentucky individual income tax return. Additionally, military spouses who meet the requirements of the MSRRA must file a new Form K-4 with their employer to request an exemption from Kentucky income tax withholding.
If you are a resident of Kentucky and serving in the military outside the United States, you may be granted an extension to file your taxes. As long as your state of legal residence with the military is Kentucky, you are considered a resident of Kentucky for income tax purposes. When filing your taxes, make sure to check the box labeled 'Military Spouse' to ensure that your income is not reported as taxable on the Kentucky income tax return. If you have had Kentucky income tax withheld, you must file the 740-NP individual income tax return form for non-residents or part-time residents of Kentucky to request a refund.
It's important to understand all of the rules and regulations that apply to military personnel in Kentucky when it comes to taxes. By taking advantage of the available exemptions, you can save money and ensure that your taxes are filed correctly.