Kentucky Statutes 141.070 – Credits allowed individuals for tax paid to other states
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(1) Whenever an individual who is a resident of this state has become liable for income tax to another state upon all or any part of the individual’s net income for the taxable year, derived from sources without this state and subject to taxation under this chapter, the amount of income tax payable under this chapter shall be credited on the return with the income tax paid to the other state, upon producing to the proper assessing officer satisfactory evidence of the fact of the payment, except that application of any credits shall not operate to reduce the tax payable under this chapter to an amount less than would have been payable were the income from the other state ignored.
(2) An individual who is not a resident of this state shall not be liable for any income tax under KRS § 141.020(4) if the laws of the state of which the individual was a resident at the time the income was earned in this state contained a reciprocal provision under which nonresidents were exempted from gross or net income taxes to the other state, if the state of residence of the nonresident individual allowed a similar exemption to resident individuals of this state. The exemption authorized by this subsection shall in no manner preclude the department from requiring any information reports under KRS § 141.150(2).
(3) As used in this section, “state” means a state of the United States, the District of Columbia, the commonwealth of Puerto Rico, or any territory or possession of the United States.
(4) Any resident entity owner of an electing entity, as those terms are defined in KRS
141.209, doing business in another state in which the tax is assessed and paid at the entity level shall be allowed a credit in accordance with subsection (1) of this section. The credit shall be based on the entity owner’s distributive share of the electing entity’s items of income, loss, deduction, and credit.
Effective: March 31, 2023
History: Amended 2023 Ky. Acts ch. 92, sec. 23, effective March 24, 2023; and ch.
148, sec. 7, effective March 31, 2023. — Amended 2018 Ky. Acts ch. 207, sec. 118, effective April 27, 2018. — Amended 2005 Ky. Acts ch. 85, sec. 478, effective June
20, 2005. — Amended 1974 Ky. Acts ch. 163, sec. 3. — Amended 1966 Ky. Acts ch.
255, sec. 138. — Amended 1960 Ky. Acts ch. 5, Art. III, sec. 4. — Amended 1958
Ky. Acts ch. 3, sec. 2. — Created 1952 Ky. Acts ch. 194, sec. 3. — Recodified 1942
Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281b-15,
4281b-16.
Legislative Research Commission Note (3/31/2023). This statute was amended by 2023
Ky. Acts chs. 92 and 148. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 148, which was last enacted by the General Assembly, prevails under KRS § 446.250.
Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch.
207, sec. 153, the amendments made to this statute in that Act apply to taxable years beginning on or after January 1, 2018.
(2) An individual who is not a resident of this state shall not be liable for any income tax under KRS § 141.020(4) if the laws of the state of which the individual was a resident at the time the income was earned in this state contained a reciprocal provision under which nonresidents were exempted from gross or net income taxes to the other state, if the state of residence of the nonresident individual allowed a similar exemption to resident individuals of this state. The exemption authorized by this subsection shall in no manner preclude the department from requiring any information reports under KRS § 141.150(2).
Terms Used In Kentucky Statutes 141.070
- Department: means the Department of Revenue. See Kentucky Statutes 141.010
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Individual: means a natural person. See Kentucky Statutes 141.010
- Nonresident: means any individual not a resident of this state. See Kentucky Statutes 141.010
- Owner: when applied to any animal, means any person having a property interest in such animal. See Kentucky Statutes 446.010
- Resident: means an individual domiciled within this state or an individual who is not domiciled in this state, but maintains a place of abode in this state and spends in the aggregate more than one hundred eighty-three (183) days of the taxable year in this state. See Kentucky Statutes 141.010
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Statute: A law passed by a legislature.
- Taxable year: means the calendar year or fiscal year ending during such calendar year, upon the basis of which net income is computed, and in the case of a return made for a fractional part of a year under the provisions of this chapter or under administrative regulations prescribed by the commissioner, "taxable year" means the period for which the return is made. See Kentucky Statutes 141.010
(3) As used in this section, “state” means a state of the United States, the District of Columbia, the commonwealth of Puerto Rico, or any territory or possession of the United States.
(4) Any resident entity owner of an electing entity, as those terms are defined in KRS
141.209, doing business in another state in which the tax is assessed and paid at the entity level shall be allowed a credit in accordance with subsection (1) of this section. The credit shall be based on the entity owner’s distributive share of the electing entity’s items of income, loss, deduction, and credit.
Effective: March 31, 2023
History: Amended 2023 Ky. Acts ch. 92, sec. 23, effective March 24, 2023; and ch.
148, sec. 7, effective March 31, 2023. — Amended 2018 Ky. Acts ch. 207, sec. 118, effective April 27, 2018. — Amended 2005 Ky. Acts ch. 85, sec. 478, effective June
20, 2005. — Amended 1974 Ky. Acts ch. 163, sec. 3. — Amended 1966 Ky. Acts ch.
255, sec. 138. — Amended 1960 Ky. Acts ch. 5, Art. III, sec. 4. — Amended 1958
Ky. Acts ch. 3, sec. 2. — Created 1952 Ky. Acts ch. 194, sec. 3. — Recodified 1942
Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281b-15,
4281b-16.
Legislative Research Commission Note (3/31/2023). This statute was amended by 2023
Ky. Acts chs. 92 and 148. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 148, which was last enacted by the General Assembly, prevails under KRS § 446.250.
Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch.
207, sec. 153, the amendments made to this statute in that Act apply to taxable years beginning on or after January 1, 2018.