42A804 (K-4)(9-2020)
KENTUCKY’S WITHHOLDING
CERTIFICATE
2021
K-4
Commonwealth of Kentucky
Department of Revenue
FORM
Social Security Number
Name—Last, First, Middle Initial
Mailing Address (Number and Street including Apartment Number or P.O. Box)
City, Town or Post Office State ZIP Code
All Kentucky wage earners are taxed at a flat 5% rate with a standard deduction allowance of $2,690. The Department
of Revenue annually adjust the standard deduction in accordance with KRS 141.081(2)(a).
Check if exempt:
¨ 1. Kentucky income tax liability is not expected this year (see instructions)
¨ 2. You qualify for the Fort Campbell Exemption Certificate. I am a resident of _________________________________
¨ 3. You qualify for the nonresident military spouse exemption
¨ 4. You work in Kentucky and reside in a reciprocal state
Additional withholding per pay period under agreement with employer $_________________________
Under penalties of perjury, I declare that I have examined this certificate and, to the best of my knowledge and belief,
it is true, correct, and complete.
______________________________________________________ _____________________________________________________
Signature Date
State
Instructions to Employees
All Kentucky wage earners are taxed at a flat 5% tax rate with an allowance for the standard deduction.
You may be exempt from withholding if any of the four conditions below are met:
1. You may be exempt from withholding for 2021 if both the following apply:
For 2020, you had a right to a refund of all Kentucky income tax withheld because you had no Kentucky income tax
liability, and
For 2021, you expect a refund of all your Kentucky income tax withheld.
Income Tax Liability Thresholds—The 2020 filing threshold amount based upon federal poverty level is expected to be $12,760 for a
family size of one (singe, or married living apart from your spouse for the entire year), $17,240 for a family of two (single with one
dependent child or a married couple), $21,720 for a family of three (single with two dependent children or a married couple with
one dependent child) and $26,200 for a family of four or more (single with three dependent children or a married couple with two
or more dependent children). Modified gross income is equal to your federal adjusted gross income plus any interest income from
other states municipal bonds and pension income from a qualifying lump-sum distribution. If your combined modified gross income
is expected to be less than the threshold amount for your family size, then you (and your spouse, if applicable) may not have an
income tax liability.
If both the above statements apply, you are exempt and may check box 1. Your exemption for 2021 expires February 15, 2021.
2. Under the provisions of Public Law 105–261, pay and compensation earned at the Fort Campbell, Kentucky, military base is
exempt from Kentucky income tax if you are not a resident of Kentucky. KRS 141.010(17) defines “resident” as an individual
domiciled within this state or an individual who is not domiciled in this state, but maintains a place of abode in this state and
spends in the aggregate more than one hundred eighty-three (183) days of the taxable year in this state.
Check box 2 if you certify that you are not a resident of Kentucky and only earn wages as an employee at Fort Campbell, Kentucky.
This exemption must be revoked within 10 days of a move or change of address to Kentucky.
42A804 (K-4)(9-2020)
3. You may be exempt from withholding, if you meet the conditions set for under the Servicemember Civil Relief Act as
amended by the Military Spouses Residence Relief Act. You must complete the worksheet below to determine if you are
eligible.
In order to qualify you must complete this form in full, certify that the you are not subject to Kentucky withholding tax because
you met the conditions set forth below, and provide a copy of your spouses military picture ID issued to the employee by the
U.S. Department of Defense.
Check box 3 if you checked “YES” to all the statements listed in the worksheet. You are exempt from Kentucky income tax
withholding. This exemption will terminate if any of the answers to the questions changes to “NO”. In general, the exemption
termination date will be the earlier of:
The day the military servicemember is no longer in the military;
The day the employee enlists in the military;
The day the employee and the military servicemember no longer live at the same address; or
The day the military servicemembers permanent duty station changes to a location outside of Kentucky.
4. You may be exempt from withholding if you work in Kentucky but reside in one of the following reciprocal states: Illi-
nois, Indiana, Michigan, West Virginia, Wisconsin, Virginia and you commute daily or Ohio and you are not a sharehold-
er–employee who is a “twenty (20) percent or greater” direct or indirect equity investor in a S corporation.
In order to qualify you must complete the worksheet below:
Check box 4 if you certify you work in Kentucky and reside in a reciprocal state.
If you meet any of the four exemptions you are exempted from Kentucky withholding. However, you must complete this form
and file it with your employer before withholding can be stopped. You will need to maintain a copy of the K-4 for your permanent
records.
1. My spouse is a military servicemember .......................................................................................... (check one) ¨ YES ¨ NO
2. I am NOT a military servicemember ................................................................................................ (check one) ¨ YES ¨ NO
3. My military servicemember spouse has a current military order assigning him or her
to a military location in Kentucky ..................................................................................................... (check one) ¨ YES ¨ NO
4. I and my military servicemember spouse live at the same address ............................................. (check one) ¨ YES ¨ NO
5. My military servicemembers state of domicile is a state other than Kentucky and I am
electing to use that state of domicile ............................................................................................... (check one) ¨ YES ¨ NO
If yes, enter the 2-letter state code of the servicemember’s state of domicile ________
6. I am present in Kentucky solely to be with my military servicemember spouse ......................... (check one) ¨ YES ¨ NO
If you checked “YES” to all the statements above, your earned income is exempt from Kentucky withholding tax.
I have not been a resident of Kentucky during the year. (Check block in front of applicable statement.) I work in Kentucky and reside in:
Illinois, Indiana, Michigan, West Virginia,  Wisconsin
Virginia and commute daily to my place of employment in Kentucky. (Must commute daily to apply.)
Ohio and I am not a shareholder-employee who is a “twenty (20) percent or greater” direct or indirect equity investor in an S corporation.
Instructions to Employers
Form K-4 is only required to document that an employee has requested an exemption from withholding OR to
document that an employee has requested additional withholding in excess of the amounts calculated using the
formula or tables. If neither situation applies, then an employer is not required to maintain Form K-4.
Upon receipt of this form, properly completed, you are authorized to discontinue withholding for an employee who
qualifies for one of the four exemptions. Retain a copy of all K-4’s received from employees.