Article: 50602
KY 740 – Schedule M – Federal Adjusted Gross Income Modifications
This screen is used to enter Kentucky-specific subtractions from federal adjusted gross income on Schedule M, Part II of the KY 740 return.
Currently, this screen supports entry of a Kentucky Net Operating Loss (NOL) subtraction.
Separate fields are available for the taxpayer and spouse, if applicable. These amounts should reflect the portion of NOL applicable for Kentucky tax purposes and should not include federal NOL amounts unless also valid at the state level.
How to Add This Screen
- Click on the State Taxes section on the left-hand side of the screen.
- Click the link I’d like to see the forms I’ve filled out or search for a form.
- Use the dropdown to select Kentucky.
- Under the General tab, click 740 – Sch M – Federal Adjusted Gross Income Modifications.
Further Information
Visit the Kentucky Department of Revenue – Individual Income Tax page for more on Kentucky return adjustments:
https://revenue.ky.gov/Individual/Individual-Income-Tax/Pages/default.aspx