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For 2023, taxpayers may be eligible for a credit of up to $2,000 and $1,600 of that may be refundable. Legislation in the works would increase the refundable portion of the credit to $1,800.
The tax credit (up to $10,000 per taxpayer; $20,000 per married couple filing jointly) may be taken against individual income tax, corporation income tax or limited liability income tax. The tax credit is taken off the state tax bill dollar-for dollar, and federal and state tax deductions still apply.
The education credits are: the American Opportunity Credit and the Lifetime Learning Credit. These credits are based on qualified undergraduate education expenses paid to an eligible postsecondary educational institution located in Kentucky.
(b) The tax credit shall equal thirty percent (30%) of the installed costs of: 1. Upgraded insulation, not to exceed one hundred dollars ($100); 2. Energy-efficient windows and storm doors, not to exceed two hundred fifty dollars ($250); or 3. Qualified energy property, not to exceed two hundred fifty dollars ($250).
The family size tax credit is based on modified gross income and the size of the family. If total modified gross income is $39,900 or less for 2023, you may qualify for the Kentucky family size tax credit.
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The instructions for Form 740-ES include a worksheet for calculating the amount of estimated tax due and for making installment payments. These forms may be obtained from the Kentucky Department of Revenue, P. O. Box 518, Frankfort, KY 40602-0518, or any Kentucky Taxpayer Service Center, or by calling (502) 564- 3658.

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