Kentucky Form 740NP-WH is the Kentucky Nonresident Income Tax Withholding on Distributive Share Income Report that must be completed by a pass-through entity when it has Kentucky nonresident withholding responsibilities for nonresident individuals, estates, or trusts that receive distributive share income. This form is used to report the number of nonresident owners included in the return, the number of nonresident owners exempt from withholding, the net distributive share income subject to withholding before apportionment, the Kentucky apportionment percentage, the Kentucky distributive share income subject to withholding, the Kentucky income tax liability, payments already made, credits, penalties, any additional tax due, any overpayment, amounts credited to interest or penalty, amounts credited to the next year’s nonresident withholding account, and any refund requested. Kentucky Form 740NP-WH is not a general individual income tax return. It is a pass-through entity withholding report that helps the Kentucky Department of Revenue determine whether the entity has paid the correct withholding on behalf of nonresident owners. The form also includes sections for entity identification, calendar year or fiscal year reporting, amended or final return status, payment summary, owner signature, paid preparer information, enclosure instructions, payment instructions, and mailing addresses. Because the form affects Kentucky nonresident withholding accounts and owner-level reporting, each line should be completed carefully using the entity’s records, Schedule A apportionment information, prior payments, extension payments, credits, and any required penalty calculation.
How To File Kentucky Form 740NP-WH
Complete Kentucky Form 740NP-WH with the pass-through entity’s identifying information, Kentucky NRWH account number, tax year, income, withholding calculation, payment history, tax due or overpayment, and signature information. If the entity has nonresident owners, include the required PTE-WH information for each owner with the return.
If the return shows a refund or no payment due, mail the completed return to:
Kentucky Department of Revenue
Frankfort, KY 40619-0006
If the return includes a payment, make the check payable to Kentucky State Treasurer and mail the return with payment to:
Kentucky Department of Revenue
Frankfort, Kentucky 40619-0006
Electronic payment options are also available through the Kentucky Department of Revenue website shown on the form. Before filing, make sure the payment amount matches the amount reported as due on the form. Keep a copy of the completed return, payment record, owner withholding schedules, and supporting calculations for the entity’s files.
How To Complete Kentucky Form 740NP-WH Line By Line
Line 1: Form 740NP-WH: This identifies the return as Kentucky Form 740NP-WH. Use this form only for Kentucky nonresident income tax withholding on distributive share income reported by a pass-through entity.
Line 2: Commonwealth Of Kentucky Department Of Revenue: This identifies the Kentucky tax agency that processes the return. You do not need to enter anything in this area.
Line 3: Kentucky Nonresident Income Tax Withholding On Distributive Share Income Report: This title explains the purpose of the return. The form reports withholding related to nonresident owners’ distributive share income.
Line 4: To Be Completed By A Pass-Through Entity Only: This tells you the form is for pass-through entities. Do not use this form for an individual taxpayer return.
Line 5: Tax Year 2025: This shows that the form applies to the 2025 tax year. Use this version only for the tax period shown on the return.
Line 6: Calendar Year Or Tax Year Beginning: If the entity files on a calendar year basis, use the 2025 calendar year. If the entity uses a fiscal year, enter the beginning date of the tax year in MM-DD-YY format.
Line 7: Tax Year Ending: Enter the ending date of the entity’s tax year in MM-DD-YY format. Make sure the ending date matches the entity’s tax records.
Line 8: Federal Identification Number: Enter the pass-through entity’s Federal Employer Identification Number. This number helps match the return to the correct federal and Kentucky business account.
Line 9: Kentucky NRWH Account Number: Enter the Kentucky nonresident withholding account number assigned to the pass-through entity. This account number is used to apply payments and credits correctly.
Line 10: Name Of Pass-Through Entity: Enter the legal name of the pass-through entity. Use the same name connected to the FEIN and Kentucky NRWH account number.
Line 11: Change Of Name Checkbox: Check this box if the pass-through entity’s name has changed. If the name has not changed, leave the box blank.
Line 12: Number And Street: Enter the entity’s mailing street address. Include suite, unit, or other address details if needed.
Line 13: City: Enter the city for the entity’s mailing address.
Line 14: State: Enter the two-letter state abbreviation for the entity’s mailing address.
Line 15: ZIP Code: Enter the ZIP Code for the entity’s mailing address.
Line 16: Telephone Number: Enter a phone number where the entity or responsible contact can be reached if there is a question about the return.
Line 17: Check The Applicable Boxes: Review the boxes in this section and check any that apply to the return.
Line 18: Change Of Accounting Period: Check this box if the entity changed its accounting period for the return being filed.
Line 19: Final Return: Check this box if this is the entity’s final Kentucky nonresident withholding return.
Line 20: Amended: Check this box if the entity is filing an amended Kentucky Form 740NP-WH to correct a previously filed return.
Line 21: Official Use Only: Leave this area blank. It is reserved for the Kentucky Department of Revenue.
Line 22: Number Of Nonresident Individuals, Estates, And Trusts Included In This Return: Enter the total number of nonresident individuals, estates, and trusts included in the return. This count should include the nonresident owners whose distributive share income is being reported.
Line 23: Number Of Nonresident Individuals, Estates, And Trusts Exempt From This Withholding: Enter the number of nonresident individuals, estates, and trusts that are included but exempt from withholding. Use the entity’s records to support any exemption claimed.
Line 24: Net Distributive Share Income Subject To Withholding Before Apportionment: Enter the total net distributive share income subject to Kentucky nonresident withholding before applying the apportionment percentage. Enter dollars and cents in the correct amount boxes.
Line 25: 100% Or The Apportionment Fraction From The Pass-Through Entity’s Schedule A: Enter 100% if all income is treated as Kentucky income. If apportionment applies, enter the apportionment fraction from the pass-through entity’s Schedule A. Use the percentage format shown on the form.
Line 26: Kentucky Distributive Share Income Subject To Withholding: Multiply line 24 by line 25. Enter the Kentucky portion of distributive share income subject to withholding.
Line 27: Tax Liability: Multiply line 26 by 4.0 percent. Enter the result as the tax liability.
Line 28: Reserved For Future Use: Leave this line blank unless future instructions require an entry. The shaded area indicates that this line is not currently used for a regular taxpayer entry.
Line 29: Kentucky Income Tax Liability: Enter the amount from line 27. This is the Kentucky income tax liability used later in the tax due or overpayment calculation.
Line 30: Continue To Next Page To Calculate Tax Due Or Overpayment: After completing lines 22 through 29, continue to page 2 to report payments, credits, penalty, tax due, overpayment, refund, or credit forward amounts.
Tax Payment Summary For Additional Tax Due
Line 31: Tax, Line 16: If additional tax is due on line 16 of page 2, enter that tax amount in the payment summary area. This summary helps show the amount being paid with the return.
Line 32: Interest: Enter any interest due with the payment. If no interest applies, leave the line blank or enter zero according to the filing method being used.
Line 33: Penalty: Enter any penalty due with the payment. This may include penalty amounts that apply because of late filing, late payment, or other applicable reasons.
Line 34: Total Payment: Add the tax, interest, and penalty amounts in the payment summary. Enter the total amount being paid with the return.
Page 2 Payment And Overpayment Lines
Line 35: Estimated Tax Payments: Enter the total estimated tax payments made for the tax year. Use the entity’s payment records to confirm the amount.
Line 36: Extension Payment: Enter any payment made with an extension for this return. Do not include the same amount again on another payment line.
Line 37: Prior Year’s Tax Credit: Enter any credit from a prior year that was applied to this year’s Kentucky NRWH account.
Line 38: Total Tax Paid On Original Return: If this is an amended return, enter the total tax paid on the original return. If this is not an amended return, enter zero or leave it blank according to the form’s required format.
Line 39: Total Payments: Add lines 35 through 38. Enter the total on this line.
Line 40: Tax Overpayment On Original Return: If this is an amended return and the original return showed an overpayment, enter that overpayment amount here. If it does not apply, enter zero or leave it blank according to the form’s required format.
Line 41: Estimated Tax Penalty: Enter any estimated tax penalty due. If this line applies, attach Form NRWH-P with the return.
Line 42: Income Tax And Estimated Tax Penalty Due: Add line 29, line 40, and line 41, then subtract line 39. If the result is greater than zero, enter the amount due. This is the tax due amount.
Line 43: Income Tax Overpayment: Subtract line 29, line 40, and line 41 from line 39. If payments are more than the total liability and penalty amount, enter the overpayment here.
Line 44: Credited To 2025 Interest: Enter the portion of the overpayment that should be applied to 2025 interest, if applicable.
Line 45: Credited To 2025 Late File Or Pay Penalty: Enter the portion of the overpayment that should be applied to 2025 late filing or late payment penalty, if applicable.
Line 46: Credited To 2026 NRWH: Enter the amount of overpayment to be credited to the entity’s 2026 Kentucky nonresident withholding account.
Line 47: Amount To Be Refunded: Subtract lines 44 through 46 from line 43. Enter the remaining amount to be refunded.
Signature Section
Line 48: Declaration Under Penalties Of Perjury: Read the declaration before signing. By signing, the owner confirms that the return and any attached schedules or statements have been reviewed and are true, correct, and complete to the best of the signer’s knowledge.
Line 49: Signature Of Owner: The owner or authorized person must sign the return. An unsigned return may be delayed or rejected.
Line 50: Date: Enter the date the owner signs the return.
Line 51: Name Of Owner: Print the owner’s name clearly.
Line 52: Title: Enter the owner’s title, such as owner, partner, member, officer, or authorized representative.
Paid Preparer Section
Line 53: Signature Of Preparer: If a paid preparer completed the return, the preparer must sign here.
Line 54: Date: Enter the date the paid preparer signs the return.
Line 55: Name Of Preparer Or Firm: Print the preparer’s name or the firm name clearly.
Line 56: ID Number: Enter the preparer or firm identification number required for the filing.
Line 57: Email And Or Telephone Number: Enter the preparer’s email address or phone number so the Department of Revenue can contact the preparer if needed.
Line 58: May The DOR Discuss This Return With This Preparer: Check Yes if the Department of Revenue may discuss the return with the paid preparer. Check No if the Department of Revenue should not discuss the return with the preparer.
Enclosure And Payment Instructions
Line 59: Include PTE-WH For Each Owner: Attach the required PTE-WH information for each owner included with the return. This supports the withholding reported for the nonresident owners.
Line 60: Refund Or No Payment Mailing Address: If the return shows a refund or no payment due, mail the completed return to Kentucky Department of Revenue, Frankfort, KY 40619-0006.
Line 61: Payment Section: If a payment is being made, prepare the payment according to the form instructions. A check should be made payable to Kentucky State Treasurer.
Line 62: Electronic Payment Options: Electronic payment options are available through the Kentucky Department of Revenue website shown on the form.
Line 63: With Payment Mailing Address: If the return includes a payment, mail the return and payment to Kentucky Department of Revenue, Frankfort, Kentucky 40619-0006.
Filing Tips For Kentucky Form 740NP-WH
Review the entity name, FEIN, Kentucky NRWH account number, tax year dates, address, and telephone number before filing. These details help the Department of Revenue match the return to the correct account.
Check the return status boxes carefully. A final return, amended return, or change of accounting period can affect processing.
Make sure line 26 is calculated by multiplying line 24 by line 25. Then calculate line 27 by multiplying line 26 by 4.0 percent. Line 29 should match line 27.
On page 2, confirm that all payment and credit entries are accurate. Lines 35 through 38 are added on line 39. If tax is still due, complete line 42 and the tax payment summary. If there is an overpayment, complete lines 43 through 47 as needed.
Do not forget to attach Form NRWH-P if an estimated tax penalty is entered on line 41. Also include PTE-WH information for each owner.
Common Mistakes To Avoid
Do not leave the FEIN or Kentucky NRWH account number blank. Do not use the wrong tax year dates. Do not forget to check the amended box when correcting a prior return. Do not enter exempt owners on the wrong line. Do not skip the apportionment percentage. Do not forget to multiply the Kentucky distributive share income by 4.0 percent. Do not enter the same payment twice. Do not request a refund on line 47 without subtracting amounts credited on lines 44 through 46. Do not forget the owner’s signature and date.
Final Review Before Filing
Before filing Kentucky Form 740NP-WH, review every identity field, checkbox, income amount, apportionment percentage, tax calculation, payment entry, credit entry, penalty entry, refund entry, and signature field. Make sure any required owner schedules or penalty forms are attached. If payment is due, confirm the payment summary matches the amount being submitted. Keep a full copy of the completed return and supporting records for the entity’s files.