For all taxpayers, Kentucky allows a pension income exclusion of up to $31,110 of pension income that was included as taxable income on the federal tax return. A retired military taxpayer may qualify for a greater deduction, and Schedule P is used to calculate the additional deduction amount, if any.
For the calculation on Schedule P, a taxpayer who retired after December 31, 1997 needs to determine their "exempt percentage". This percentage is calculated using the worksheet in the Schedule P instructions, and the Kentucky DOR has also made this worksheet into an Excel spreadsheet that you can download and use to help with the calculation.
To complete Schedule P in TaxSlayer ProWeb, from the Kentucky Return menu select:
- Retirement Income (Schedule P)
-
Complete If date Of Retirement is before January 1, 1998 or
Complete If date Of Retirement is After December 31, 1997 - Several menu lines are provided for each category. Select the appropriate menu line based on the retirement date, then enter the remaining information including the exempt percentage for a taxpayer who retired after December 31, 1997.
Additional Information:
Kentucky DOR: Forms and Instructions
Kentucky DOR: Schedule P Calculator (downloadable Excel spreadsheet)
TaxSlayer Pro strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.