740-NP-R: Kentucky Income Tax Return Nonresident - Reciprocal State (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
Form 740-NP-R is Kentucky’s 2025 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, optional fund contributions, and the amount to be refunded.
Who files this form
Form 740-NP-R may be used by qualifying full-year nonresidents to claim a refund of Kentucky income tax withheld during 2025. To qualify:
- You must have been a nonresident of Kentucky for all of 2025.
- Your only Kentucky income for 2025 must have been salaries or wages earned while you were a resident of Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia or Wisconsin.
- If you were a Virginia resident, you must have commuted daily to your Kentucky job.
Nonresidents who answer “No” to any applicable eligibility 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.
What you'll need
Enclose both of these with your return:
- Schedule KW-2, showing your Kentucky income tax withheld.
- A copy of the 2025 return filed with your state of residence.
The form also asks for your name, Social Security number, mailing address, driver’s license or state-issued ID number, signature and date signed.
How to file
- Answer the applicable eligibility questions A through C and check your state or states of residence.
- Enter only the name of the taxpayer who earned the Kentucky wages and salaries. Do not include a spouse’s name.
- If eligible, complete lines 1–4. Enter Kentucky income tax withheld from Schedule KW-2 on line 1, excluding local tax withheld.
- Enter any fund contributions on lines 2a–2k and add them on line 3. Subtract line 3 from line 1 to calculate the refund on line 4.
- Sign and date the return. Enclose Schedule KW-2 and a copy of your 2025 state-of-residence return.
Mail to:
Kentucky Department of Revenue
Frankfort, KY 40620-0012
Common mistakes
- Including local tax withheld on line 1. Enter only Kentucky income tax withheld as shown on Schedule KW-2.
- Including your spouse on the same return. Each spouse must file a separate Form 740-NP-R if both earned only Kentucky wages and salaries as residents of a reciprocal state.
- Leaving out required enclosures. Include Schedule KW-2 and a copy of the 2025 return filed with your state of residence.
- Treating gambling winnings as wages. Race track, lottery and other gambling winnings are not salaries or wages.
- Assuming all income is covered by reciprocity. Gambling income and distributive share income reported on Schedule K-1 are not exempt. That income is fully taxable, and a complete return must be filed if filing requirements are met.
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 2025. Fund contributions entered on the form reduce the amount refunded.
Can my spouse and I file one Form 740-NP-R together?
No. If both spouses earned only Kentucky wages and salaries as residents of a reciprocal state, each must file a separate Form 740-NP-R. Do not include your spouse’s name on your form.
What extra rule applies to Virginia residents?
Virginia residents must have commuted daily to a place of employment in Kentucky to qualify.
What if I answer “No” to an eligibility question?
Nonresidents who answer “No” to any applicable statement must file Form 740-NP to report Kentucky income.