Schedule KW-2: Kentucky Income Tax Withheld (Revision 2025-10)
Kentucky · Kentucky DOR · Used for tax years 2025
Schedule KW-2 reports Kentucky income tax withheld on Forms W-2, 1099, and W-2G. It determines the total 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 to report Kentucky income tax withheld on Forms W-2, 1099, and W-2G and determine the withholding credit for Kentucky Form 740, 740-NP, or 740-NP-R. Enclose the schedule with your return.
The schedule must be fully completed to receive proper credit for Kentucky income tax withheld. Use additional Schedule KW-2 forms if needed to report all Kentucky withholding.
What you'll need
Have these records and details available to complete the schedule:
- All Forms W-2, 1099, and W-2G showing Kentucky income tax withheld.
- Your Social Security number, your spouse’s Social Security number, and names as shown on the tax return.
- Employee or recipient Social Security numbers, employer or payer identification numbers, and Kentucky state ID numbers.
- Kentucky wages or income amounts and Kentucky income tax withheld.
Keep your W-2, 1099, and W-2G forms with your tax records. Do not send them in.
How to file
Enclose Schedule KW-2 with Kentucky Form 740, 740-NP, or 740-NP-R.
- In Part I, enter all W-2s with Kentucky income tax withheld. Use Box 16 for Kentucky state wages, Box 17 for Kentucky withholding, and Box 15 for the employer’s state ID number.
- In Part II, enter all 1099s and W-2Gs with 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 line 18 total on Form 740 or 740-NP, line 31(a), or Form 740-NP-R, line 1.
Use additional Schedule KW-2 forms as needed. The schedule does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving the schedule incomplete: Fully complete it to receive proper credit for Kentucky income tax withheld.
- Omitting withholding records: Report all Kentucky withholding, using additional schedules if needed.
- Including other taxes in Part I: Do not include other state withholding or local income tax.
- Sending source forms: Do not send in Forms W-2, 1099, or W-2G. Keep them with your tax records.
- Entering a six-digit Kentucky state ID unchanged: Add three zeros before a six-digit Kentucky state ID shown on a W-2, 1099, or W-2G.
- Not rounding amounts: Round to the nearest whole dollar as directed.
Questions people ask
Should I send my W-2s and 1099s with Schedule KW-2?
No. Keep Forms W-2, 1099, and W-2G with your tax records. Enclose Schedule KW-2 with your Kentucky return.
What if I run out of space?
Use additional Schedule KW-2 forms as needed to report all Kentucky income tax withholding.
What if my Kentucky state ID number has only six digits?
Add three zeros before the six-digit number shown on your W-2, 1099, or W-2G.
Where does the total withholding go on my 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 local tax or another state’s withholding in Part I?
No. Part I says not to include other state withholding or local income tax.