740-NP-R: Kentucky Income Tax Return Nonresiden - Reciprocal State (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Form 740-NP-R is Kentucky’s 2024 income tax return for qualifying full-year nonresidents from reciprocal states to claim a refund of Kentucky income tax withheld. It reports Kentucky tax withheld, fund contributions, and the amount to be refunded.
Who files this form
Form 740-NP-R may be used to claim a refund of Kentucky income tax withheld for 2024 if you:
- Were a nonresident of Kentucky for all of 2024.
- Had only Kentucky salaries or wages earned while living in Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, or Wisconsin.
- If you were a Virginia resident, commuted daily to work in Kentucky.
Answer the applicable questions A through C to check your eligibility. Nonresidents who answer “No” to any applicable statement must file Form 740-NP to report Kentucky income.
Reciprocity does not apply to people who lived in Kentucky for more than 183 days during the tax year. For Ohio residents, the agreement does not exempt wages paid by an S corporation to a shareholder-employee who is a direct or indirect equity investor of 20% or more.
If both spouses earned only Kentucky wages and salaries while residents of a reciprocal state, each must file a separate Form 740-NP-R.
What you'll need
Enclose these documents with your return:
- Schedule KW-2 showing your Kentucky income tax withheld.
- A copy of the 2024 income tax return filed with your state of residence.
The form also asks for your Social Security number, name, mailing address, and driver’s license or state-issued ID number.
How to file
- Enter only the name of the taxpayer who earned the Kentucky wages and salaries. Do not include a spouse’s name.
- Answer the applicable questions A through C and check your state or states of residence.
- If eligible, enter the total Kentucky income tax withheld from Schedule KW-2 on line 1. Do not include local tax withheld.
- Enter any fund contributions on lines 2a through 2k, then add them on line 3.
- Subtract line 3 from line 1 to calculate your refund on line 4.
- Sign and date the return. Enclose Schedule KW-2 and a copy of your 2024 return filed with your state of residence.
Mail the return to:
Kentucky Department of Revenue
Frankfort, KY 40620-0012
Common mistakes
- Including a spouse on the same return. Enter only the name of the taxpayer who earned the wages. Each qualifying spouse must file separately.
- Including local tax on line 1. Report only Kentucky income tax withheld, as shown on Schedule KW-2.
- Leaving out required enclosures. Include Schedule KW-2 and a copy of your 2024 resident-state return.
- Treating gambling winnings as wages. Race track, lottery, and other gambling winnings are not salaries or wages. Gambling income and distributive share income reported on Schedule K-1 are not exempt under reciprocal agreements. A complete return must be filed if filing requirements are met.
- Overlooking reciprocity limits. Reciprocity does not apply if you lived in Kentucky for more than 183 days during the tax year. Virginia residents must commute daily to Kentucky employment, and the Ohio agreement has an exception for certain S corporation shareholder-employee wages.
Questions people ask
What is Form 740-NP-R used for?
Qualifying full-year nonresidents use it to claim a refund of Kentucky income tax withheld during 2024.
Can my spouse and I file one Form 740-NP-R?
No. If both spouses earned only Kentucky wages and salaries while residents of a reciprocal state, each must file a separate form. Do not include your spouse’s name on your return.
What if I answer “No” to an eligibility question?
Nonresidents who answer “No” to any applicable statement in questions A through C must file Form 740-NP to report Kentucky income.
Are lottery winnings covered by reciprocity?
No. Lottery and other gambling winnings are not salaries or wages. Gambling income is fully taxable, and a complete return must be filed if filing requirements are met.
How do fund contributions affect my refund?
Add the contributions on lines 2a through 2k and enter the total on line 3. Subtract that total from the Kentucky income tax withheld on line 1 to determine the refund on line 4.