Schedule KCR: Kentucky Consolidated Return Schedule (Revision 2025-10)
Kentucky · Kentucky DOR · Used for tax years 2025
Schedule KCR is Kentucky’s Consolidated Return Schedule for corporations. It reports federal taxable income, Kentucky additions and subtractions, and net income, with columns for individual corporations, the parent, intercompany eliminations, and consolidated totals.
Who files this form
An affiliated group filing an elective consolidated Kentucky tax return under KRS 141.201 must complete Schedule KCR to calculate its Kentucky consolidated net income.
Attach Schedule KCR to Form 720, Kentucky Corporation Income Tax and LLET Return.
What you'll need
Have these forms and details available, as applicable:
- Form 720 and its Part I instructions for additions and subtractions.
- Each subsidiary’s name, federal employer identification number (FEIN), and Kentucky Corporation/LLET Account Number, if applicable.
- Schedule CR, line 28, for federal taxable income.
- Schedule A, Part II, lines 3 and 7, for non-apportionable income.
- Federal Form 1120, Form 4797, Kentucky Form 4797, Kentucky Schedule D, and Kentucky Schedules K-1 for the amounts referenced on Schedule KCR.
- Revenue Agent Report (Form 4549), if amending Form 720 because of RAR adjustments. Attach a copy to the return.
- Explanations for other additions on line 20 or other subtractions on line 39.
Attach all applicable schedules.
How to file
Attach Schedule KCR to Form 720 filed with the Kentucky Department of Revenue. The supplied text does not provide a mailing address or e-file directions.
Enter the parent and subsidiary amounts, intercompany eliminations, and consolidated totals in the appropriate columns. Transfer lines 1 through 40 of the Total column to Form 720, Part I, lines 1 through 40.
If the group has more than two subsidiaries, use page 3, the Kentucky Consolidated Return Schedule continuation sheet.
Common mistakes
- Leaving a Kentucky Corporation/LLET Account Number at six digits. The form requires nine digits. Add leading zeros if the number has six digits.
- Missing attachments. Attach all applicable schedules and explanations for amounts on lines 20 and 39.
- Using the RAR lines for other adjustments. Use lines 8 and 26 only when amending Form 720 because of Revenue Agent Report adjustments, and attach a copy of the report.
- Omitting the continuation sheet. Use page 3 if the affiliated group has more than two subsidiaries.
Questions people ask
What does Schedule KCR calculate?
It calculates Kentucky consolidated net income for an affiliated group filing an elective consolidated Kentucky tax return.
How do I calculate net income on line 40?
For each column, subtract lines 22 through 39 from line 21.
Where do the amounts for lines 41 and 42 come from?
Line 41 uses net non-apportionable income from Schedule A, Part II, line 3. Line 42 uses Kentucky net non-apportionable income from Schedule A, Part II, line 7. Enter each total in the total column and the applicable amounts in the parent and subsidiary columns.
Where do I report Revenue Agent Report adjustments?
Report federal taxable income increases on line 8 and decreases on line 26. Use these lines only when amending Form 720 because of RAR adjustments, and attach a copy of Form 4549 to the return.