Enter long-term care insurance premiums paid in 2005. Do not claim as an itemized deduction.

Health Insurance Premiums

Enter medical and dental insurance premiums paid for yourself, your spouse and your dependents. This deduction applies to premiums paid with after-tax dollars. Note: You cannot deduct on Line 12 insurance premiums paid with pretax dollars (cafeteria plans and vouchers already excluded from wage income) because the premiums are not included in box 1of your W-2 form(s). Do not include long-term care insurance premiums included on Schedule M, Line 11. You may not deduct premiums paid on your behalf (advance payments) and you must reduce the amount you paid by the amount of health coverage tax credit.

Enter resident adjustment from Kentucky Schedule K-1

Partners, beneficiaries of estates and trusts and S corporation shareholders, see Kentucky Schedule K-1 instructions. Subtract the distributive share of net income from an S corporation subject to the franchise tax imposed under KRS 136.505 or the capital stock tax imposed under KRS 136.300.

Depreciation, Section 179 Deduction and Gains/ Losses From Disposition of Assets

Important: Use Schedule M, Lines 4 and 14 only if you have elected for federal income tax purposes to take the 30 percent or the 50 percent special depreciation allowance or the increased Section 179 deduction for property placed in service after September 10, 2001. A copy of the federal Form 4562 filed for federal income tax pur oses must be submitted with Form 740 to verify that no adjustments are required .

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