The Kentucky Joint Filing Agreement is a legal document that allows married couples to file their state income taxes jointly rather than separately. By filing jointly, couples can potentially lower their overall tax liability and take advantage of various tax benefits and deductions. In Kentucky, there are two types of Joint Filing Agreement options available: the Kentucky Resident Joint Filing Agreement and the Kentucky Nonresident Joint Filing Agreement. 1. Kentucky Resident Joint Filing Agreement: This type of agreement is applicable to married couples who are residents of Kentucky and file their state income taxes jointly. By combining their incomes and deductions, they can benefit from a potentially lower tax rate and an increased standard deduction. 2. Kentucky Nonresident Joint Filing Agreement: This agreement is designed for married couples in which one spouse is a Kentucky resident and the other is a nonresident. By filing jointly, the couple can declare their combined income and deductions, potentially reducing their overall tax burden. The Kentucky Joint Filing Agreement requires both spouses to sign the document, declaring their consent to file jointly. Once signed, it becomes legally binding for that tax year. By using this agreement, couples can simplify their tax filing process and potentially maximize their tax savings. It is important to note that each couple's financial situation is unique, and consulting a tax professional or accountant is recommended to determine the best filing option for their specific circumstances.