740-PTET: Kentucky Pass-Through Entity Tax (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Form 740-PTET is Kentucky’s 2024 Pass-Through Entity Tax return, completed only by a pass-through entity. It reports Kentucky distributive share income, tax credits, payments, and any tax due or overpayment.
Who files this form
The 2024 Form 740-PTET is for pass-through entities only. It includes a checkbox for electing to pay income tax at the entity level.
The form does not state which entities are required to file. When reporting the number of partners, members, or shareholders included in the return, do not include C-corporations.
What you'll need
Have the following information ready to complete the return:
- The entity’s name, address, telephone number, federal identification number, and LLET account number, if available.
- The number of partners, members, or shareholders included in the return, excluding C-corporations.
- Net distributive share income before apportionment and the entity’s Schedule A apportionment fraction, if used.
- The owners’ nonrefundable tax credits and any tax credit received on a 740-PTET-CR.
- Estimated tax payments, an extension payment, and any prior-year tax credit.
- Tax paid and any overpayment on the original return, if applicable.
The form says to include Form PTET-CR for each owner.
How to file
Complete the entity information and check the applicable boxes, including the election to pay income tax at the entity level. Complete both pages to calculate the tax due or overpayment, and include Form PTET-CR for each owner.
A member must sign and date the return and provide their printed name and title. The form also has a paid preparer section.
For returns with a payment, a refund, or no payment, the printed mailing address is:
Kentucky Department of Revenue
Frankfort, KY 40619-0006
Make checks payable to Kentucky State Treasurer. For additional tax due, complete the Tax Payment Summary with tax, interest, penalty, and total payment.
The form lists www.revenue.ky.gov for e-pay options. It does not provide e-filing instructions.
Common mistakes
- Do not include C-corporations in the owner count on line 1.
- Follow the printed number-format reminder: use nine digits, adding leading zeros if the number has six digits.
- Do not stop after page 1. Continue to page 2 to calculate tax due or overpayment.
- Do not forget to include Form PTET-CR for each owner.
Questions people ask
What tax rate does the 2024 form use?
Line 5 calculates tax before credits by multiplying Kentucky distributive share income on line 4 by 4.0% (.04).
Where do I report a credit received on a 740-PTET-CR?
Enter that credit on line 8.
Can an overpayment be credited to the next year?
Yes. Line 21 provides for an amount to be credited to 2025 PTET. The form also has lines for amounts credited to 2024 interest and late filing or payment penalties. Line 22 calculates the amount to be refunded after those credits.
Can the Department of Revenue discuss the return with my preparer?
The paid preparer section has YES and NO boxes for indicating whether the DOR may discuss the return with that preparer.