Where is the Kentucky 740 Schedule P ( KY retirees pension income exclusion)? It is used to modify 740 Schedule M (Ky Federal AGI modifications)?

[DanielV01 · Accepted solution]

It is a part of the KY interview.  It is connected to the section of Government Pensions (this includes Teachers).  Since KY lowered the automatic exclusion of pension income from 41,110 to 31,110, there are more who need to file Schedule P to have pension percentages calculated before the exclusion.  The steps below will help you to do so:  

1. Click Yes on the screen asking about Government Pension Income.
2. Answer the question if you retired before January 1, 1998 (If you did, your pension will be exempted once you enter the information in the next screen providing the retirement date and pension amount).
3. If you answered no on that screen, answer yes on the next screen if you retired after 1997 and had service credits from before 1998.  You will need to answer questions in the following screens that will allow additional amounts of your pension to be exempted from income.  These additional amounts are reported on Schedule P and are added to the automatic exemption of $31,110.  The information you will need to enter should be available on your 1099-R