Kansas Other Subtractions

Article ID: 58803  

Kansas Other Subtractions


Many Kansas taxpayers have income that is taxable at the federal level, but is not taxable to Kansas. These adjustments to income are called Modifications to Federal Adjusted Gross Income, and are reported on Kansas Schedule S, Part A.

You may NOT subtract the amount of your income reported to another state.

  Jobs Tax Credit. Federal targeted jobs tax credit disallowance claimed on your federal income tax return.

• Kansas Venture Capital, Inc. Dividends. Dividend income received from Kansas Venture Capital, Inc.

• KPERS Lump Sum Distributions. Employees who terminated KPERS employment after 7/1/84, and elect to receive their contributions in a lump sum distribution will report their taxable contributions on their federal return. Subtract the amount of the withdrawn accumulated contributions or partial lump-sum payment(s) to the extent either is included in federal AGI.

• Partnership, S Corporation, or Fiduciary Adjustments. The proportionate share of any required subtraction adjustments on income received from a partnership, S corporation, joint venture, syndicate, trust or estate. The partnership, S corporation, or trustee will provide you with information to determine this amount.

• S Corporation Privilege Adjustment. If you are a shareholder in a bank, savings and loan, or other financial institution that is organized as an S corporation, enter the portion of any income received that was not distributed as a dividend. This income has already been  taxed on the privilege tax return filed by the S corporation financial institution. Do not include any modification from federal Schedule E and included on line A25 of Schedule S.

• Sale of Kansas Turnpike Bonds. Gain from the sale of Kansas  turnpike bonds that was included in your federal AGI.

• Electrical Generation Revenue Bonds. Gain from the sale of electrical generation revenue bonds, included in your federal AGI. • Native American Indian Reservation Income. Income earned on a reservation by a native American Indian residing on his or her tribal reservation, to the extent it is included in federal AGI.

• Amortization –  Energy Credits.  Allowable amortization deduction relating to credit schedule K-73, K-77, K-79, K-82 or K-83, and the allowable amortization deduction for carbon dioxide  capture, sequestration or utilization machinery and equipment, or waste heat  utilization system property.  Note:  55% of  the amortization costs may be subtracted in the first year and 5% for each of the succeeding nine years.

• Organ  Donor Expenses.  Unreimbursed travel,  lodging,  and medical expenditures incurred by you or your dependent, while living, for the donation of human organ(s) to another person for transplant; to the extent that the expenditures are included in your federal AGI. This subtraction modification cannot exceed $5,000. See NOTICE 14-03 for more information. 

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