Kentucky NRWH-P

Line-by-line guide to correctly completing Form NRWH-P.

Kentucky Form NRWH-P is the “Individual and Corporate Nonresident Income Tax Withholding Underpayment Penalty Calculations” form. This detailed worksheet is used by pass-through entities (like partnerships and S-corporations) to determine if they owe a penalty for failing to pay sufficient estimated withholding tax on behalf of their nonresident partners or members throughout the year. The form is split into distinct sections for Individual nonresident partners (INDNRWH) and Corporate nonresident partners (CPNRWH). Because Kentucky requires quarterly estimated payments on the distributive share income of nonresidents, this form reconciles what you should have paid against what you actually paid by each due date. If you underpaid, the form guides you through calculating the interest-based penalty, which then flows onto your main withholding return (Form 740NP-WH).

How to Complete Kentucky Form NRWH-P

How to Complete Kentucky Form NRWH-P

Part I: Required Annual Payment (Individual Partners)

This section establishes the total tax baseline for your individual nonresident partners.

  • Line 1: Enter the total estimated individual nonresident income tax withholding (INDNRWH) for the current year.
  • Line 2: Enter any applicable nonrefundable credits.
  • Line 3: Subtract Line 2 from Line 1. This result is your total required estimated tax liability for individual partners.

Part II: Figuring The Underpayment (Individual Partners)

Here, you break down the payments quarter-by-quarter to spot any shortfalls. Complete Lines 7 through 13 for one column before moving to the next.

  • Line 4: Enter the due dates. For individuals, these are generally the 15th day of the 4th, 6th, and 9th months of the tax year, and the 15th day of the 1st month following the close of the tax year.
  • Line 5: Enter 25% of the total from Line 3 in each of the four columns.
  • Line 6: Enter the actual estimated tax paid or credited by each due date. For Column A, enter this same amount on Line 10.
  • Line 7: Enter the amount, if any, from Line 13 of the preceding column (this is your carryover overpayment).
  • Line 8: Add Line 6 and Line 7 together for the current column.
  • Line 9: Add the amounts from Lines 11 and 12 of the preceding column.
  • Line 10: Subtract Line 9 from Line 8. If the result is zero or less, enter zero. For Column A, this matches Line 6.
  • Line 11: If the amount on Line 10 is zero, subtract Line 8 from Line 9. Otherwise, enter zero.
  • Line 12 (Underpayment): If Line 10 is less than or equal to Line 5, subtract Line 10 from Line 5. This is your underpayment for the quarter. Then, go to Line 7 of the next column. If Line 10 is greater, go to Line 13.
  • Line 13 (Overpayment): If Line 5 is less than Line 10, subtract Line 5 from Line 10. This is your overpayment. Then, go to Line 7 of the next column.

Part III: Figuring The Penalty (Individual Partners)

If you have an underpayment on Line 12 for any column, use this section to calculate the specific penalty amount.

  • Line 14: Enter the date the installment was paid in full (or the 15th day of the 4th month after the tax year ends, whichever is sooner).
  • Line 15: Calculate the number of days the payment was late (count days from the Line 4 due date to the Line 14 payment date).
  • Line 16: Enter the number of days from Line 15 that fall after April 15, 2021, and before January 1, 2022.
  • Line 17: Calculate the penalty for this period: (Line 12 amount × Line 16 days / 365) × 5%.
  • Line 18: Enter the number of days from Line 15 that fall after December 31, 2021, and before the day after the return due date or January 1, 2023.
  • Line 19: Calculate the penalty for this period: (Line 12 amount × Line 18 days / 365) × 5%.
  • Line 20: Enter the number of days from Line 15 that fall after December 31, 2022, and before March 16, 2023 (or return due date).
  • Line 21: Calculate the penalty for this period using the 2023 Tax Due Penalty Rate.
  • Line 22: Add Lines 17, 19, and 21 for each column.
  • Line 23: Sum the penalties from all columns (A through D) of Line 22. Enter the total in Column D and add this to the specific penalty line on your Form 740NP-WH.

Part IV: Required Annual Payment (Corporate Partners)

This section mirrors Part I but focuses exclusively on your corporate nonresident partners.

  • Line 1: Enter the estimated corporate nonresident income tax withholding (CPNRWH) for the current year.
  • Line 2: Enter any nonrefundable credits.
  • Line 3: Subtract Line 2 from Line 1 to find the total required estimated tax for corporate partners.

Part V: Figuring The Underpayment (Corporate Partners)

This section tracks the quarterly payments for corporate partners. Complete Lines 7 through 13 for one column before moving to the next.

  • Line 4: Enter the due dates. For corporations, these are the 15th day of the 4th, 6th, 9th, and 12th months of the tax year.
  • Line 5: Enter 25% of the total from Line 3 in each column.
  • Line 6: Enter the actual estimated tax paid for corporate partners by each date. For Column A, enter this amount on Line 10.
  • Line 7: Enter the amount, if any, from Line 13 of the preceding column.
  • Line 8: Add Line 6 and Line 7 together.
  • Line 9: Add the amounts from Lines 11 and 12 of the preceding column.
  • Line 10: Subtract Line 9 from Line 8. If zero or less, enter zero. For Column A, this matches Line 6.
  • Line 11: If the amount on Line 10 is zero, subtract Line 8 from Line 9. Otherwise, enter zero.
  • Line 12 (Underpayment): If Line 10 is less than or equal to Line 5, subtract Line 10 from Line 5. This is your underpayment. Then, move to the next column.
  • Line 13 (Overpayment): If Line 5 is less than Line 10, subtract Line 5 from Line 10. This is your overpayment. Then, move to the next column.

Part VI: Figuring The Penalty (Corporate Partners)

Finally, calculate the dollar amount of any penalties owed for corporate partner underpayments.

  • Line 14: Enter the date the payment was made (or the 15th day of the 4th month after the tax year ends).
  • Line 15: Count the days late from the Line 4 due date.
  • Line 16: Enter days from Line 15 falling after 04/15/2021 and before 01/01/2022.
  • Line 17: Calculate penalty: (Line 12 × Line 16 / 365) × 5%.
  • Line 18: Enter days from Line 15 falling after 12/31/2021 and before 01/01/2023 (or return due date).
  • Line 19: Calculate penalty: (Line 12 × Line 18 / 365) × 5%.
  • Line 20: Enter days from Line 15 falling after 12/31/2022 and before 03/16/2023.
  • Line 21: Calculate penalty using the 2023 rate.
  • Line 22: Add Lines 17, 19, and 21 in each column.
  • Line 23: Sum the penalties from all columns. Transfer this final CPNRWH Penalty amount to the appropriate line on your Form 740NP-WH.
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