Kentucky K-4

The Kentucky K-4 Form is a “Withholding Certificate” used by employees and employers in Kentucky to declare withholding exemptions or request additional withholding amounts. This form is essential for employees who believe they qualify for exemption from Kentucky state income tax withholding, as well as for those who wish to have extra tax withheld from their paychecks beyond the standard calculation. The K-4 form helps ensure that withholding tax is appropriately adjusted based on personal circumstances such as military status, reciprocal state agreements, or income tax liability thresholds. By filling out this form, employees can either stop withholding if exempt or increase withholding according to their preferences, ensuring their tax obligations are accurately met for the year.

How to Complete the Kentucky K-4 Form

1. Enter Your Personal Information:
   • Social Security Number: Write your Social Security Number (SSN) in the designated space.
   • Name: Provide your full name, including your last name, first name, and middle initial.
   • Mailing Address: Fill in your full mailing address, including your street address, apartment number (if applicable), P.O. Box, city, state, and ZIP code.
2. Determine Your Exemption Status:
   • Check if Exempt: You may qualify for exemption from Kentucky income tax withholding if any of the following conditions apply to you. Check the box that applies to your situation:
     • Exemption 1: You expect no Kentucky income tax liability for the year because you had no liability in the previous year and anticipate receiving a refund for all taxes withheld.
     • Exemption 2: You qualify for the Fort Campbell Exemption, meaning you are a non-resident earning wages at Fort Campbell, Kentucky.
     • Exemption 3: You qualify for the nonresident military spouse exemption under the Servicemember Civil Relief Act.
     • Exemption 4: You work in Kentucky but reside in a reciprocal state (such as Illinois, Indiana, or Michigan) and meet the conditions outlined.
3. Additional Withholding Per Pay Period (if applicable):
   • Enter Additional Withholding: If you and your employer have agreed to an additional amount of withholding per pay period beyond the standard rate, enter that amount in the provided space.
4. Declaration Under Penalties of Perjury:
   • Sign and Date: In this section, you must declare under penalties of perjury that the information you have provided is true, correct, and complete. Sign the form, and enter the date you are signing it.
5. Employer Information (for Employer Use):
   • Instructions for Employers: Employers should retain a copy of the K-4 form to document the exemption or the request for additional withholding. Upon receipt of a properly completed K-4 form, the employer is authorized to stop withholding for an employee who qualifies for an exemption or adjust withholding as requested.

Instructions for Employees

• Exemption Conditions: You may be exempt from withholding if your total income is below the required thresholds or if you meet specific conditions like being a nonresident military spouse or working at Fort Campbell, Kentucky. Make sure to check the appropriate box on the form to claim your exemption status.
• Income Tax Liability Thresholds: The form provides income tax liability thresholds based on family size. If your income is expected to be below these thresholds, you may qualify for exemption from withholding. The thresholds for the year are:
  • $15,060 for a family of one
  • $20,440 for a family of two
  • $25,820 for a family of three
  • $31,200 for a family of four or more
• Military Spouse Exemption: If you are the spouse of a servicemember, you may qualify for a withholding exemption. The form includes a detailed worksheet to help determine if you qualify for this exemption. If you meet all the conditions, check the appropriate box to claim this exemption.
• Reciprocal State Exemption: If you work in Kentucky but live in one of the reciprocal states (e.g., Illinois, Indiana, Michigan, etc.), you may also be exempt from Kentucky withholding. Check the box for this exemption if applicable.

Instructions for Employers

• Form K-4 Requirement: Employers are only required to maintain a Form K-4 if an employee requests exemption from withholding or asks for additional withholding. If neither of these situations applies, the employer does not need to retain the form.
• Discontinue Withholding: Upon receiving a completed K-4 form, employers should stop withholding for employees who qualify for an exemption. Ensure that a copy of the form is retained in the company’s records.