CREDITS
Credit for taxes paid to other states
If you paid income tax to another state, you may be eligible for a credit against your Kansas tax liability. If you had income from a state that has no state income tax, make no entry on line 13. If you are eligible for a tax credit paid to another state, the credit amount cannot exceed the tax liability shown on the other state’s tax return and the income derived from the other state must be included in your Kansas adjusted gross income (KAGI), line 3 of Form K-40. The tax liability is NOT the amount of tax withheld for the other state. Important—To receive a credit for taxes paid to another state, you must enclose a copy of the other state(s) tax return and supporting schedules with Form K-40. Copies of the other state’s W-2 forms are NOT acceptable.
Foreign Tax Credit
As used in this section, state means any state of the United States, District of Columbia, Puerto Rico, any territory or possession of the United States and any foreign country or political subdivision of a foreign country. The Kansas credit for foreign taxes is first limited to the difference between the actual tax paid to the foreign country and the foreign tax credit allowed on your federal return. If you claimed the foreign tax paid as an itemized deduction on your federal return, no credit is allowed in this section. Important—If claiming a foreign tax credit, and you completed federal Form 1116, enclose a copy with your Kansas return.
Taxes Paid to Other States by Kansas Residents
If you are a Kansas resident you may claim this credit if: 1) your KAGI (line 3) includes income earned in the other state(s); and 2) you were required to pay income tax to the other state(s) on that income. Important—Your credit is NOT the amount of tax withheld in the other state(s); it is determined from the “Worksheet for Residents” that follows. Complete the tax return(s) for the other state(s) and the income or earnings tax return filed with any local jurisdiction. If a return was not required for the local jurisdiction, complete a local return showing the amount of tax paid to the local jurisdiction and include it with your K-40 before using the worksheet. The amount of income tax paid to another state includes tax paid to that state and to any local political subdivision
Taxes Paid to Other States by Part-year Residents that file as Nonresidents
If filing as a nonresident of Kansas you may claim this income tax credit if:
• you were a Kansas resident for part of the year;
• your total income reported to Kansas includes income earned in the other state while you were a Kansas resident; and,
• you were required to pay taxes on that other state’s income
Credit for child and dependent care expenses
This credit is available to residents only - nonresidents and part-year residents are not eligible. Multiply amount of credit allowed against your federal tax liability (federal Form 2441) by 18.75% and enter the result on line 14.
Other credits
Enter the total of all tax credits for which you are eligible. In claiming credits, you must complete and enclose the applicable schedule(s) with your Form K-40.
Adoption K-47
Angel Investor K-30
Business and Job Development (for carry forward use only)K-34
Community Service Contribution K-60
Declared Disaster Capital Investment (for carry forward use only) K-87
Disabled Access K-37
Electric Cogeneration Facility (for carry forward use only) K-83
High Performance Incentive Program (HPIP) K-59 Historic Preservation K-35
Individual Development Account K-68
Center for Entrepreneurship K-31
Low Income Student Scholarship K-70
Owners Promoting Employment Across Kansas (PEAK) K-88
Plugging Abandoned Gas or Oil Well (for carry forward use only) K-39
Purchases from Qualified Vendor K-44
Research and Development (for carry forward use only) K-53
Rural Opportunity Zone K-89
Storage and Blending Equipment (for carry forward use only) K-82
Venture and Local Seed Capital (for carry forward use only) K-55
Earned income tax credit (EITC): This credit is for residents only – not part-year residents or nonresidents – and is a percentage of the federal EITC.
Food sales tax credit: Enter your food sales tax credit as computed on Line H, front of Form K-40.