The Kentucky Estimated Insurance Premiums Tax Form 74A110 serves as a key reporting tool from the Kentucky Department of Revenue, enabling insurance providers to declare and pay their projected insurance premiums tax in advance through two scheduled installments during the calendar year. Designed primarily for domestic, foreign, and alien insurance entities operating in Kentucky, this form ensures timely contributions to state revenues by requiring prepayments from companies whose prior-year premiums tax exceeded $5,000, helping to spread out the financial burden and avoid a large lump-sum payment at year-end. It addresses three core tax components: the 1.5% tax on life and health policy premiums under Kentucky Revised Statute 136.330 for domestic and foreign insurers; the 2% tax on non-life policies—such as property, casualty, and other coverages—excluding workers’ compensation, as outlined in KRS 136.340, 136.350, 136.370, and 136.390; and retaliatory taxes and fees imposed on foreign and alien insurers per KRS 304.3-270, which mirror taxes those insurers’ home states apply to Kentucky companies. Businesses can opt to calculate estimates using actual premiums from the previous year or forecasted figures for the current year, providing adaptability while cautioning that underestimates trigger penalties and interest at rates set in KRS 131.010(6). The form features detachable vouchers for the first payment due June 1 and the second due October 1, with the remaining balance settled via the annual Insurance Premiums Tax Return (Form 74A100) by March 1 of the next year; if retaliatory obligations topped $5,000 last year, one-third estimates must accompany these filings. Accompanying a helpful worksheet, the form aids in subtracting credits—like prior-year carryovers from Form 74A100’s page 4, current guaranty fund assessments, or New Markets Development Program incentives—to refine net liability and divide it into equal thirds, reducing errors and excess credits from assessments. Overall, this mechanism promotes fiscal planning for insurers while enforcing compliance through monthly penalties up to 25% on underpayments, ensuring the state’s insurance tax system remains robust and equitable.
Who Needs To File Form 74A110?
Insurance companies with a Kentucky premiums tax of $5,000 or higher from the prior calendar year must submit estimated installment reports for the current year. This includes separate estimates for retaliatory taxes if those exceeded $5,000 previously, calculated as one-third of the prior or current estimate. Entities projecting zero liability are exempt from filing.
Filing Procedures For Form 74A110
Selecting Calculation Method
Decide between using prior-year reported premiums or current-year projected taxable amounts, noting that underestimates incur penalties and interest. Indicate your choice by checking the relevant box on each installment voucher.
Payment Deadlines
File the first installment with Form 74A110 by June 1 of the current year, detaching and mailing the voucher. Submit the second installment similarly by October 1. Pay the final one-third with Form 74A100 by March 1 of the following year.
Submission Details
Pay by check to “Kentucky State Treasurer,” mailing the form and payment to P.O. Box 1303, Frankfort, KY 40602-1303 for regular mail or 501 High Street, Frankfort, KY 40601-2103 for overnight. For online payments, include the Payment Schedule Confirmation with the voucher at these addresses.
How to Complete Form 74A110
Administrative Fields
Ignore “For Official Use Only” areas, including account numbers and codes like Tax Mo. Yr. Tr., as these are for Department of Revenue processing.
First Installment Voucher (Due June 1)
Enter the form title “Kentucky Estimated Insurance Premiums Tax” for Calendar Year 2026. Fill your nine-digit FEIN and NAIC or Tax ID. Provide company name, street address, city, state, and ZIP code.
- Line A: Input the installment for life and health policy premiums tax, noting confirmation number if paid online (Tax Code 01).
- Line B: Enter the amount for non-life policy premiums tax, excluding workers’ compensation, with confirmation if applicable (Tax Code 02).
- Line C: Record retaliatory taxes for foreign/alien insurers, including confirmation number (Tax Code 06).
- Line D: Sum Lines A, B, and C for the total due.
Check the basis (previous year or current estimate). If paid online, mark the box and attach confirmation. Sign with date, email, officer signature, printed name, title, and phone. Declare accuracy under perjury penalties. Detach before mailing.
Second Installment Voucher (Due October 1)
Repeat the title, year, and identification fields as in the first voucher.
- Line A: Enter the second installment for life and health premiums tax with confirmation (Tax Code 01).
- Line B: Input the amount for other policies’ premiums tax, excluding workers’ compensation, with confirmation (Tax Code 02).
- Line C: Note retaliatory taxes with confirmation (Tax Code 06).
- Line D: Add Lines A, B, and C for total.
Select basis checkbox, mark online payment if used, and complete signature section as before. Detach prior to mailing.
Worksheet For Estimated Tax Calculations
Mark previous-year or current-estimate basis.
- Line A: State taxable premiums from life and health policies.
- Line B: List taxable premiums from non-life policies, excluding workers’ compensation.
- Line C: Total Lines A and B.
- Line D.1: Multiply life/health portion of Line C by 1.5% for liability.
- Line D.2: Multiply non-life portion of Line C by 2% for liability.
- Line E.1: Add prior-year credits from Form 74A100 page 4.
- Line E.2: Include guaranty fund credits for the year.
- Line E.3: Enter New Markets Development Program credits.
- Line F: Subtract total E lines from total D lines.
- Line G: One-third of Line F for June 1.
- Line H: One-third of Line F for October 1.
- Line I: One-third of Line F for March 1, 2027.
Amended Second Installment Form
Use by October 1 to revise estimates; enter year and identification details. Mark online payment if applicable.
- Column 1 (Amended Estimated Tax): Full revised year tax per category.
- Column 2: Two-thirds of Column 1.
- Column 3: First installment payment amount.
- Column 4: Column 2 minus Column 3 for balance due.
- Line A: Complete columns for life/health premiums (Tax Code 01), with confirmation.
- Line B: Fill for non-life premiums, excluding workers’ compensation (Tax Code 02), with confirmation.
- Line C: Detail retaliatory taxes (Tax Code 06), with confirmation.
- Line D: Sum Column 4 across A, B, C.
Sign with date, email, name, title, and phone, affirming truth under perjury.
Consequences Of Non-Compliance
Underpayments draw 5% monthly penalties, capped at 25% per report, plus interest from due date per KRS 131.010(6).