740-NP Schedule A: Kentucky Itemized Deduction for Nonresidents or Part-Year Residents (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Form 740-NP Schedule A is used by nonresidents and part-year residents to calculate itemized deductions for 2024. It reports deductible interest, charitable contributions, and other miscellaneous deductions for use on Form 740-NP.
Who files this form
Schedule A is for nonresidents or part-year residents claiming Kentucky itemized deductions on Form 740-NP for tax year 2024.
You may itemize for Kentucky even if you do not itemize on your federal return. If you do not itemize, you may elect the $3,160 standard deduction, which does not have to be prorated.
If one spouse itemizes deductions, the other must itemize. Married taxpayers combining deductions must complete lines 15 through 18 if they file separate Kentucky returns or if one spouse does not file a Kentucky return.
What you'll need
Gather the documents and information that apply to your deductions:
- Form 740-NP: Use the same name or names shown on page 1 and enter your Social Security number. For lines 15 through 18, you also need your income from Form 740-NP, line 8, and your joint or combined federal adjusted gross income.
- Mortgage interest: Have federal Form 1098 for reported interest and points. If mortgage interest was paid to an individual and was not reported on Form 1098, provide that person's name, identifying number, and address.
- Investment interest: Complete and enclose federal Form 4952 unless you meet the exception in the instructions.
- Charitable gifts: Keep receipts, cancelled checks, or other reliable written documentation showing the organization's name and the date and amount given. Each contribution of $250 or more also requires written acknowledgment from the organization. Keep that acknowledgment in your files, not with your return.
- Property donations: Keep records describing the property, when and where you gave it, and how you determined its value. Enclose federal Form 8283 if your total deduction for property gifts exceeds $500. Appraisals may also be required if the total deduction exceeds $5,000.
- Temporary housing donations: Enclose Schedule HH if claiming the value of a leasehold interest contributed to a charitable organization to provide temporary housing for homeless people.
Common mistakes
- Prorating deductions too early: Enter total deductions for the taxable period on Schedule A. The instructions say these amounts are prorated on Form 740-NP, page 1.
- Skipping the spouse allocation: If married filing separately, or your spouse is not filing a Kentucky return, complete lines 15 through 18. If single or married filing jointly, carry line 14 to Form 740-NP, page 1, line 11.
- Sending charitable acknowledgments with the return: Keep the required substantiation for contributions of $250 or more in your files. Do not send it with your return.
- Claiming personal loan interest: Credit card, automobile loan, and other consumer loan interest cannot be deducted here.
- Deducting the full gift when you received a benefit: Deduct only the amount above the value of the benefit you received.
- Adding unlisted expenses to line 12: Only the miscellaneous expenses specifically listed in the instructions may be deducted on that line.
Questions people ask
Can I itemize for Kentucky if I did not itemize federally?
Yes. The instructions expressly allow this.
What standard deduction can I choose instead for 2024?
If you do not itemize, you may elect a $3,160 standard deduction. It does not have to be prorated.
Can I deduct gambling losses?
Yes, but only up to the amount of gambling winnings reported on federal Form 1040 or 1040-SR, Schedule 1, line 8(b).
How do I value donated used clothing or furniture?
Use the property's fair market value when you donated it. This is what a willing buyer would pay a willing seller when neither has to buy or sell and both know the conditions of the sale.
When can I leave out federal Form 4952?
You do not have to file it if all three conditions apply: your investment interest is no more than your investment income from interest and ordinary dividends, you have no other deductible investment expenses, and you have no disallowed investment expense from 2023.