Article: 50346

Overview

This worksheet is used to calculate the Limited Liability Entity Tax Credit and, if applicable, the Inventory Tax Credit for Kentucky filers.

To complete the worksheet, enter the following information for each applicable entity:

• Kentucky corporate account number
• Entity EIN, name, and address (including ZIP, city, and state)
• Percentage of ownership
• Type of Return (choose from 720S, 765, 765-GP, or 725)
• Line 2: Limited liability entity income
• Line 7: Nonrefundable limited liability entity tax credit

⚠️ Note: An amount must be entered on Line 2 in order for the credit to be applied.

KY INV – Inventory Tax Credit Worksheet

This section is used to report the Distributive Share of Allowable Inventory Tax Credit for the entity listed above.

Before entering the credit, make sure the following fields are completed in the section above:

• Entity EIN
• Entity Name
• Percentage of Ownership

Once complete, enter the distributive share amount in the Inventory Tax Credit Worksheet field.

How to Add This Screen

1. Go to the State taxes section.
2. Select I’d like to see the forms I’ve filled out or search for a form.
3. In the drop list, select Kentucky.
4. Select the SMLLC tab.
5. Select Limited Liability Entity Tax Credit Worksheet to add and open the form.
6. Complete the screen.
7. Click Save to apply changes.

Further Information

Visit the Kentucky Department of Revenue – Individual Income Tax page for additional details:
https://revenue.ky.gov/Individual/Individual-Income-Tax/Pages/default.aspx