These are items of income that are not taxed or included on your Federal return but are taxable to Kansas.
Enter interest income received, credited, or earned by you during the taxable year from any state or municipal obligations such as bonds and mutual funds. Reduce the income amount by any related expenses (such as management or trustee fees) directly incurred in purchasing these state or political subdivision obligations.
DO NOT include interest income on obligations of the state of Kansas or any Kansas political subdivision issued after December 31, 1987, or the following bonds exempted by Kansas law:
If you are a shareholder in a fund that invests in both Kansas and other states' bonds, only the Kansas bonds are exempt. Use the information provided by your fund administrator to determine the amount of taxable (non-Kansas) bond interest to enter here.
Individuals affected are state employees, teachers, school district employees and other regular and special members of KPERS, regular and special members of the Kansas Police and Firemen's Retirement System and members of the Justice and Judges Retirement System.
Current employees: Add the amount you contributed from your salary to the Kansas Public Employees' Retirement System (KPERS) as shown on your W-2 form, typically box 14.
Retired employees: If you are receiving RETIREMENT checks from KPERS, the amount of your retirement income is subtracted on line A12 "Retirement benefits specifically exempt from Kansas income tax". Make no entry unless you also made contributions to KPERS during 2007 (for example, you retired during 2007).
Lump Sum Distributions: If you received a lump sum KPERS distribution during 2007, include on line A2 your 2007 KPERS contributions and follow the instructions for line A17 "Other subtractions from Federal adjusted gross income."
Enter any Federal net operating loss carry forward claimed on your 2007 Federal income tax return.
Enter the amount of any charitable contribution claimed on your federal return used to compute the Regional Foundation Community Contribution Credit on Schedule K-32.
Add the following to your Federal adjusted gross income:
Individual Development Account (IDA) : CONTRIBUTORS: Enter the amount of the contribution claimed to the extent the same is the basis for claiming the Individual Development Account Credit on Schedule K-68. ACCOUNT HOLDERS: Enter amounts received as withdrawals that are not used to pay for education expenses; job training costs; purchase of primary residence; or major repairs or improvement to a primary residence.
Federal Income Tax Refund: As a general rule, there will be no entry here unless you amended your federal return for a prior year due to an investment credit carry back or a net operating loss carry back which resulted in you receiving a Federal Income Tax refund in 2007 for that prior year.
Disabled Access Credit Modification: Enter the amount of any depreciation deduction or business expense deduction claimed on your Federal return that was used to determine the Disabled Access Credit on Schedule K-37.
Partnership, S Corporation or Fiduciary Adjustments: If you received income from a partnership, S corporation, joint venture, syndicate, estate or trust, enter your proportionate share of any required addition adjustments. The partnership, S Corporation, or trustee will provide you with the necessary information to determine these amounts.
Community Service Contribution Credit: Enter the amount of any charitable contribution claimed on your federal return used to compute the Community Service Contribution Credit on Schedule K-60.
Swine Facility Improvement Credit: Enter the amount of any costs claimed on your federal return and used as the basis for this credit on Schedule K-38.
Learning Quest Education Savings Program: Enter the amount of any "nonqualified withdrawal" from the Learning Quest Education Savings Program.
Small Employer Healthcare Credit: Reduce the amount of expense deduction that is included in the federal adjusted gross income by the dollar amount of the credit claimed.
Expenditures - Energy Credits: Enter the amount of any expenditures claimed to the extent the same is claimed as the basis for any credit allowed on Credit Schedule K-73, K-77, K-78, K-79 or K-80.
Amortization - Energy Credits: Enter the amount of any amortization deduction claimed on the federal income tax return to the extent the same is claimed for deduction with regard to Credit Schedule K-73, K-77, K-78 or K-79.
These are items of income that are taxable on your federal return but are not taxable to Kansas.
If your Federal Adjusted Gross Income is $50,000 or less, (regardless of your filing status) enter the amount received as benefits in 2007 under the Social Security Act (including SSI) to the extent these benefits are included in Federal adjusted gross income. Do NOT make an entry if your social security benefit is not subject to federal income tax.
Enter any amounts withdrawn from a qualified retirement account and include any earnings thereon to the extent that the amounts withdrawn were:
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:
Enter any state or local income tax refund included as income on your Federal return.
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.
If you are receiving retirement benefits/pay, use this line to report retirement benefits exempt from Kansas Income Tax. Enter the total amount of benefits received from these plans that was included in your Federal adjusted gross income.
For example, KPERS retirement benefits are subject to Federal income Tax, but exempt from Kansas Income Tax. YOU WILL NEED TO MAKE A SPECIFIC ENTRY on Schedule S to report these exempt benefits.
The following retirement benefits are exempt from Kansas income tax.
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:
Enter the amount of the military compensation earned in Tax Year 2007 only if you are a nonresident of the State of Kansas.
Single, Head of Household, and Married Filing Separate filers purchasing a LCT contract for the named taxpayer will be limited to one (1) $700 subtraction modification per return.
Married Filing Joint filers purchasing LCT contracts for both named taxpayers will be limited to two (2) $700 subtraction modifications per return (for a total subtraction of $1,400).
Enter the amount of contributions deposited in the Learning Quest Education Savings Program, up to a maximum of $3,000 per student (beneficiary) or, $6,000 per student (beneficiary) if your filing status is married filing joint.
Effective July 1, 2007, immediate withdrawal of funds from the Learning Quest program used to pay post-secondary education expenses are allowed - no add-back required.
Enter amounts received as a recruitment, sign up or retention bonus you received as an incentive to join, enlist or remain in the armed forces of the United States (including Kansas Army and National Guard), to the extent included in federal adjusted gross income. Also enter amounts you received for repayment of educational or student loans incurred by you or for which you are obligated to, which you received as a result of your service in the armed forces of the United States, to the extent included in federal adjusted gross income.
Total the following subtractions from your Federal adjusted gross income and enter it. You may NOT subtract the amount of your income reported to another state.
Individual Development Account (IDA): Enter the amount of income earned on contributions deposited to an individual development account established to pay for education expenses; job training; purchase of primary residence; or, major repairs or improvements to a primary residence.
Kansas National Guard Death Benefit: Enter the amount received as a death benefit, not to exceed $250,000, paid to you as the beneficiary or beneficiaries of any member of the Kansas National Guard who, after November 1, 2004 and prior to July 1, 2007, dies as a result of federal active duty in a combat area in the line of duty.
Jobs Tax Credit: Enter the amount of the Federal targeted jobs tax credit disallowance claimed on your Federal Income Tax return.
Kansas Venture Capital, Inc. Dividends: Enter the amount of dividend income received from Kansas Venture Capital, Inc.
KPERS Lump Sum Distributions: Employees who terminated KPERS employment after July 1, 1984, 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 Adjusted Gross Income.
Partnership, S Corporation or Fiduciary Adjustments: If you received income from a partnership, S Corporation, joint venture, syndicate, trust or estate, enter your proportionate share of any required subtraction adjustments. The partnership, S Corporation, or trustee will provide you with the necessary 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.
Sale of Kansas Turnpike Bonds: Enter the gain from the sale of Kansas Turnpike Bonds that was included in your Federal adjusted gross income.
Electrical Generation Revenue Bonds: Enter the gain from the sale of Electrical Generation Revenue Bonds that was included in your Federal adjusted gross income.
Native American Indian Reservation Income: Enter the amount of income earned on a reservation, by a native American Indian residing on his or her tribal reservation, to the extent included in federal adjusted gross income.
Amortization - Energy Credits: Enter the amount of amortization deduction allowed relating to Credit Schedules K-73, K-77, K-78, K-79, K-82 or K-83, and the amount of amortization deduction allowed 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% may be subtracted for each of the succeeding 9 years.