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Kansas Subtractions From Federal Adjusted Gross Income

Article ID: 34352  

Question
Kansas Subtractions From Federal Adjusted Gross Income

Answer

These are items of income that are taxable on your Federal return but are not taxable to Kansas.

Interest on U.S. Government Obligations
Enter any interest or dividend income received from obligations or securities of any authority, commission or instrumentality of the United States and its possessions that was included in your federal adjusted gross income. This includes U.S. Savings Bonds, U.S. Treasury Bills, and the Federal Land Bank. You must reduce the interest amount by any related expenses (such as management or trustee fees) directly incurred in the purchase of these securities. If you are a shareholder in a mutual fund that invests in both exempt and taxable federal obligations, only that portion of the distribution attributable to the exempt federal obligations may be subtracted here. Retain a schedule showing the name of each U.S. Government obligation interest deduction claimed, as it may be requested by the department at a later date. Interest from the following are taxable to Kansas and may NOT be entered on this line:

  • Federal National Mortgage Association (FNMA)
  • Government National Mortgage Association (GNMA)
  • Federal Home Loan Mortgage Corporation (FHLMC)

State or Local Income Tax Refund
Enter any state or local income tax refund included as income on your federal return. Kansas

Net Operating Loss Carry Forward
Enter the amount from line 15 of Schedule CRF if it is the first year of carry forward OR line 17 a-j of Schedule CRF if it is any of the years following. Enclose a Schedule CRF for each loss year.

Exempt Retirement Benefits
If you are receiving retirement benefits/pay, use this line to report retirement benefits exempt from Kansas Income Tax. For example, KPERS retirement benefits are subject to Federal Income Tax, but exempt from Kansas Income Tax. You must make a specific entry on Schedule S to report these exempt benefits. On line A10 enter the total amount of benefits received from these plans that was included in your federal adjusted gross income. Do not enclose copies of the 1099R forms with your return but keep copies for your records in case the Department of Revenue requires verification at a later date.

Federal Retirement Benefits: Federal Civil Service Retirement or Disability Fund payments and any other amounts received as retirement benefits from employment by the Federal government or for service in the United States Armed Forces.

Kansas Pension Plans:
 

  • Kansas Public Employees. Retirement Annuities
  • Kansas Police and Firemen.s Retirement System Pensions
  • Kansas Teachers. Retirement Annuities
  • Kansas Highway Patrol Pensions
  • Justices and Judges Retirement System
  • Board of Public Utilities

_Income from retirement annuity contracts purchased for faculty and others employed by the State Board of Regents or by educational institutions under its management with either their direct contributions or through salary reduction plans.
_Certain pensions received from Kansas first class cities that are not covered by the Kansas Public Employees Retirement System

Railroad Retirement Benefits: Any retirement plan administered by the U.S. Railroad Retirement Board, including U.S. Railroad Retirement Benefits, tier I, tier II, dual vested benefits, and supplemental annuities.

Military Compensation of a Nonresident Servicemember
Enter the amount of the military compensation earned in tax year 2009 only if you are a nonresident of the state of Kansas.

Qualified Long-Term Care (LTC) Insurance Contracts
Single, Head of Household, and Married Filing Separate filers purchasing a LTC contract for the named taxpayer will be limited to one (1) $600 subtraction modification per return.<b


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Views: 1184 Created on: Jun 15, 2013