Schedule KW-2: Kentucky Income Tax Withheld (Revision 2024-10)
Kentucky · Kentucky DOR · Used for tax years 2024
Schedule KW-2 reports Kentucky income tax withheld on Forms W-2, 1099, and W-2G. It totals the withholding to enter on Kentucky Form 740, 740-NP, or 740-NP-R and is enclosed with that return.
Who files this form
Complete Schedule KW-2 if you are reporting Kentucky income tax withheld on Form 740, 740-NP, or 740-NP-R. The schedule must be fully completed to receive proper credit for the tax withheld.
Report all Kentucky income tax withholding from Forms W-2, 1099, and W-2G. Use additional Schedules KW-2 if needed.
What you'll need
Use your Forms W-2, 1099, and W-2G that show Kentucky income tax withheld to complete the schedule. Keep these forms with your tax records rather than sending them in.
You will need:
- Your name as shown on your tax return, your Social Security number, and your spouse’s Social Security number, if applicable.
- For each W-2: the employee’s Social Security number, employer’s EIN, state and employer’s state ID number from Box 15, Kentucky state wages from Box 16, and Kentucky income tax withheld from Box 17.
- For each 1099 or W-2G: the recipient’s Social Security number, payer’s EIN, state and payer’s state ID number, Kentucky income amount, and Kentucky income tax withheld.
How to file
Enclose Schedule KW-2 with Form 740, 740-NP, or 740-NP-R.
- In Part I, enter all W-2s showing Kentucky income tax withheld. Round amounts to the nearest whole dollar. Do not include other states’ withholding or local income tax.
- In Part II, enter all 1099s and W-2Gs showing Kentucky income tax withheld. Round amounts to the nearest whole dollar.
- In Part III, line 18, combine the withholding totals from Column F, lines 11 and 17.
- Enter the total from line 18, Column F, on Form 740 or 740-NP, line 31(a), or Form 740-NP-R, line 1.
Use additional Schedules KW-2 as needed. Do not send your W-2, 1099, or W-2G forms; keep them with your tax records.
Common mistakes
- Leaving the schedule incomplete: It must be fully completed to receive proper credit for Kentucky income tax withheld.
- Leaving out withholding: Report all Kentucky income tax withholding, using additional Schedules KW-2 as needed.
- Including other taxes in Part I: Do not include other states’ withholding or local income tax.
- Not rounding amounts: Round to the nearest whole dollar as directed.
- Sending source forms: Do not send your W-2, 1099, or W-2G forms. Keep them with your tax records.
Questions people ask
What is Schedule KW-2 used for?
It determines the total Kentucky income tax withholding to enter on Form 740, 740-NP, or 740-NP-R.
What if I need more space to report my withholding?
Use additional Schedules KW-2 as needed to report all Kentucky income tax withholding.
Should I send my W-2s or 1099s with this schedule?
No. The form says not to send W-2, 1099, or W-2G forms. Keep them with your tax records.
Where do I enter the total on my Kentucky return?
Enter the total from Schedule KW-2, line 18, Column F, on Form 740 or 740-NP, line 31(a), or Form 740-NP-R, line 1.
Should I include another state’s withholding in Part I?
No. Part I says to enter W-2s with Kentucky income tax withheld and not to include other states’ withholding or local income tax.