![]() ![]() Kentucky only taxes a business on the portion of its net income that was generated by its business activity in Kentucky. After all the various additions and subtractions, a company arrives at Kentucky net income. On the other hand, the IRS allows companies to deduct the amount they pay in state income taxes Kentucky requires those amounts to be added back. Kentucky does not tax such dividend income, so the amount of dividends received is subtracted from a company’s federal income. For example, federal law includes amounts received as dividends in a company’s taxable income. Kentucky’s laws require some amounts to be added to federal income and some amounts to be subtracted. Then that income is adjusted according to Kentucky’s specific tax laws. Kentucky’s corporate income tax calculation starts with federal taxable income as reported on a business’s federal tax return. Make Kentucky adjustments to Federal taxable income. There are three steps involved in calculating Kentucky Corporate Income Tax. ![]() Taxpayers now have 180 days to submit an amended income tax return to Kentucky from the date the federal audit final determination is issued by the IRS.įor tax years beginning on or after January 1, 2018, the previous rate brackets have been replaced with a flat 5% tax rate. These changes do not apply to protests of real property tax assessments.įederal Audit Final Determinations The due date for submission to Kentucky increases from 30 to 180 days. This 60-day protest period applies to tangible personal property tax bills. Protest Time Period Changes For notices of tax due and refund denials issued on or after July 1, 2018, the time to file a protest increased from 45 to 60 days. ![]()
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