740-PTET: Kentucky Pass-Through Entity Tax (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
Form 740-PTET is Kentucky’s 2025 pass-through entity tax return, completed only by a pass-through entity. It reports Kentucky distributive share income, entity-level income tax liability, credits and payments, and any tax due or overpayment.
Who files this form
Form 740-PTET is for completion by a pass-through entity only. The 2025 form includes a box for electing to pay income tax at the entity level.
The form does not state which entities are required to file.
What you'll need
Have the following information and applicable forms ready:
- 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 if using its apportionment fraction.
- Form 740-PTET-CR for any tax credit reported on line 8. The form also says to include Form PTET-CR for each owner.
- Amounts for estimated tax payments, extension payments, prior-year tax credit, and any original-return payments or overpayment reported on the return.
- Form PTET-P for the estimated tax penalty reported on line 16.
How to file
Complete both pages, check the applicable boxes, and include Form PTET-CR for each owner. Complete the member signature, date, printed name, and title fields.
For a refund, no payment, or a return with payment, the printed mailing address is:
Kentucky Department of Revenue
Frankfort, KY 40619-0006
If paying by check, make it payable to Kentucky State Treasurer. Complete the Tax Payment Summary for additional tax due, including 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 number of partners, members, or shareholders on line 1.
- Do not stop after page 1. The form directs you to continue to page 2 to calculate tax due or overpayment.
- Do not leave out the owner forms. The form says to include Form PTET-CR for each owner.
Questions people ask
What tax rate does the 2025 form use?
Line 5 calculates tax liability by multiplying Kentucky distributive share income on line 4 by 4.0% (.04).
How is Kentucky distributive share income calculated?
Multiply net distributive share income before apportionment on line 2 by the percentage or fraction on line 3. Line 3 calls for 100% or the apportionment fraction from the entity’s Schedule A.
Can an overpayment be applied to next year’s PTET?
Yes. Line 21 provides for an amount credited to 2026 PTET. Line 22 calculates the refund by subtracting amounts credited on lines 19 through 21 from the overpayment on line 18.
Can the Department of Revenue discuss the return with my preparer?
The paid preparer section has YES and NO boxes for indicating whether the Department of Revenue may discuss the return with that preparer.