Knowledge Base

16427: KY - EF Message 1216 - Credit for Taxes Paid to Another State


How do I clear EF message 1216 for an individual KY return with income from another state? 


EF message 1216 produces when the resident state on Federal screen 1 is KY, and there is reported income on the return for an additional state(s). 

When e-filing a Kentucky return containing a Credit for Taxes Paid to Other State worksheet (KYCTP_WK), and the state is not a reciprocal state to Kentucky, a "Type of Income" entry is required. Enter the state and "Type of Income" on Kentucky data entry screen CTP for each non-reciprocal state for which a credit is being claimed. For Reciprocal states (IL, IN, MI, OH, VA, WI, WV) the "Type of Income" will auto populate.

To clear this message and calculate the credit for taxes paid to the other state, go to Kentucky screen CTP, and select the state that the other income is for, and enter the type of income. For example: a W-2 from NC would be entered as state: NC, income: wages.

Note: Part-year Kentucky residents will need to fill out all fields on KY screen CTP in order for the credit to produce. For part-year residents, the fields for income reported and tax paid are direct entry fields.

Information from screen CTP flows to KY CTP_WK to calculate the credit amount. The credit allowed then flows to KY ITC Credit Schedule and then to KY Form 740, line 15.

Kentucky does not allow a credit for taxes paid to a reciprocal state on the income listed below:

 State Excluded Income Types
Illinois Wages and Salaries
Ohio Wages and Salaries
West Virginia Wages and Salaries
Indiana Wages, Salaries, and Commissions
Michigan income from personal services, including salaries and wages
Wisconsin income from personal services, including salaries and wages
Virginia commuting daily, salaries, and wages

Refer to Kentucky 740 instructions, page 18 for details.


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