The Taxpayer Relief Act of 1997 includes some tax credits that may be available to graduate students and postdoctoral scholars. If a tax treaty exists between the U.S. and a student's home country, the student may also be exempt from Kentucky income tax.
Students are responsible for making any necessary estimated tax payments.
Federal Form 1040-ES can be downloaded from the Forms page of IRS web site. Kentucky Form 740-ES can be downloaded from the Kentucky Revenue Cabinet. Student should file federal tax Form 1040NR and probably Kentucky Form 740 at tax time each year. In general, the Commonwealth of Kentucky provides the same exemption as does the federal government. The exempt amount is reported on Form 1042S. Individuals should file federal Form 1040NR each year, and probably Kentucky Form 740.