Skip to content

Kentucky Dependent Care, Family Size, Senior, and Homestead Tax Relief

Kentucky tax relief relevant to caregiver households, including the Child and Dependent Care Credit, Family Size Tax Credit, personal credits for people age 65 or older or legally blind, and the homestead exemption for homeowners age 65 or older or classified as totally disabled.

Kentucky taxpayers claiming the Child and Dependent Care Credit enter the federal Form 2441 credit multiplied by 20% on Form 740 or 740-NP. Kentucky also provides a Family Size Tax Credit for income-limited households; the family-size rules include qualifying children and can include a child who is permanently and totally disabled at any time during the year. Personal credits include $40 for each person on the return who is age 65 or older and $40 for each legally blind person. For property tax, Kentucky's homestead exemption lets eligible homeowners age 65 or older or classified as totally disabled deduct $49,100 from the assessed value of their home for the 2025-2026 assessment years.

Questions to ask the program

These are questions to ask the program, not a verdict on your eligibility. Confirm the current rules directly with the program.

  • Does the person receiving care live in Kentucky? — Residency is usually the first thing a program checks.
  • Which tax year does this apply to, and what form claims it?
  • Does your employer already offer this, and have they told staff? — Some credits are claimed by the employer, not by you — asking is the move.

Services

Kentucky taxpayers claiming the Child and Dependent Care Credit enter the federal Form 2441 credit multiplied by 20% on Form 740 or 740-NP. Kentucky also provides a Family Size Tax Credit for income-limited households; the family-size rules include qualifying children and can include a child who is permanently and totally disabled at any time during the year. Personal credits include $40 for each person on the return who is age 65 or older and $40 for each legally blind person. For property tax, Kentucky's homestead exemption lets eligible homeowners age 65 or older or classified as totally disabled deduct $49,100 from the assessed value of their home for the 2025-2026 assessment years.

How to apply

Use the official program page for application details: official program page.

  • cdctc (companion): Kentucky Child and Dependent Care Credit is calculated from the federal Form 2441 credit.