For  tax year 2018 only, Kentucky did not allow gambling losses as an itemized deduction.

For tax year 2019 and after, gambling losses are allowed as an itemized deduction to the extent of gambling winnings.

Yes, estimated tax payments are required to cover this potential liability. However, as a general rule, estimated tax payments are not required if you owe less than $500 in tax.

Yes, you are still entitled to exclude more than $31,110 if you are retired from the federal government, the Commonwealth of Kentucky, or a Kentucky local government and a portion of your pension income is attributable to federal or Kentucky government service performed prior to January 1, 1998.  You are required to complete Form 740, Schedule P if you meet this criteria and your pension exceeds $31,110.

No, you can no longer deduct health insurance premiums paid for tax year 2018 and thereafter.

​No, Kentucky no longer allows a deduction for unreimbursed employee expenses for tax year 2018 and thereafter.

​Yes, Kentucky conforms to the federal changes made to section 529 savings accounts.  For more information, see 2018 Kentucky House Bill 434.

​No, Kentucky no longer requires the self-employed health insurance to be added back on the Kentucky Schedule M.

​No.  If you have reported social security income on federal Form 1040, line 5b, you can subtract this amount on Kentucky Schedule M, line 10.

​No. This deduction expired at the end of 2021 and no legislation has been passed to extend it.

Yes. The Tax Cuts and Jobs Act increased the federal limitation threshold for cash contributions and Kentucky adopted that provision. For most gifts by cash or check, the total amount of such contributions that can be deducted is now limited to 60% of your Kentucky adjusted gross income, instead of 50%. 

Yes, the Department of Revenue will waive any penalty for failing to comply with the 110% safe-harbor rule in 2019 for taxpayers with AGI over $150,000 ($75,000 if married filing separate). The 100% safe harbor rule will apply for 2019 as in prior years for Kentucky. However, the 110% safe-harbor rule will apply for 2020 and subsequent years.