Changes in Kansas Tax Laws

Submitted by Steve Robbins, AARP Kansas State Tax-Aide Coordinator

Significant Changes to Kansas Tax Law

Starting for tax year 2013 there are two significant changes to tax law that may impact many low to moderate income taxpayers.

Food Sales Tax Credit : The previous Food Sales Tax Refund has become a non-refundable credit.  It can only be used to offset state income taxes you owe.  The maximum credit is $125 per exemption.  As in previous years, a taxpayer must have been a Kansas resident for the whole year and have a Federal Adjusted Gross Income of $30,615 or less.  They must also meet at least one of following qualifiers:

A)     Must be born before January 1, 1958 OR

B)     Must claim an exemption for one or more dependent children under the age of 18 all of 2013 on the federal return OR

C)     Must have been totally and permanently disabled or blind for all of 2013

Below are 3 examples of how this may impact taxpayers.  In all these examples the taxpayer made $18,000, was a full year Kansas resident and was over 55 for the full year.

               Example 1:  The taxpayer owes $200 in taxes on their 2013 income.  The Food Sales Tax Credit would be $125.  The Food Sales Tax Credit would be applied against the $200 tax liability and their final tax bill would be $75 ($200-$125). 

               Example 2:  The taxpayer owes $50 in taxes on their 2013 income.  The Food Sales Tax Credit would be $125.    The Food Sales Tax Credit would be applied against the $200 tax liability and their final tax bill would be $0 ($50-$125).  The unused Food Sales Tax Credit would be lost.  Even though the final tax bill would be zero, the taxpayer would have to file a Kansas tax return to get the credit to offset the $50 tax liability.

               Example 3: The taxpayer owes $0 in taxes on their 2013 income.  The Food Sales Tax Credit would be $125.    Since there is no tax liability the Food Sales Tax Credit can not be refunded.  The unused Food Sales Tax Credit would be lost.

Homestead Refund (Property Tax Refund) :  Previously the Homestead Refund was available to both property owners and renters.  Starting in Taxyear 2013 the Homestead Refund will only be available to property owners.

To Qualify: As a Kansas resident for all of 2013, you are eligible for a refund of up to $700, if your total household income is $32,900 or less, AND you are a homeowner, AND pay property tax, AND

•             You were born before January 1, 1958, OR

•             You are totally and permanently disabled or blind for the entire year of 2013, OR

•             You have a dependent child who lived with you that was born before January 1, 2013 and was under the age of 18 in all of 2013, OR

•             You are a disabled veteran (50% or more disability) or the surviving spouse of a disabled veteran who has not remarried or the surviving spouse of an active duty military personnel who died in the line of duty and not remarried.

Household income is generally all taxable and non-taxable income received by all members of the household.

Who needs to file a Kansas Tax Return for Taxyear 2013?

1)      You are required to file a Federal 2013 tax return (see IRS Pub 4012 pg (TBA) for requirements

2)      OR your Kansas adjusted gross income is more than the total of your Kansas standard deduction and exemption allowance

If you are not required to file a federal return you may use the table below to determine if you are required to file a Kansas return.

A Kansas resident must file if he or she is:                              And gross income is at least:

Single

               Under 65                                                                                        $5,250

               65 or older OR blind                                                                     $6,100

               65 or older AND blind                                                                  $6,950

Married Filing Joint

               Under 65 (both spouses)                                              $12,000

               65 or older OR blind (one spouse)                                             $12,700

               65 or older OR blind (both spouses)                                         $13,400

               65 or older AND blind (one spouse)                                          $13,400

               One spouse 65 or older OR blind and other spouse              $14,100

                                             65 or older AND blind

               65 or older AND blind (both spouses)                                       $14,800

Head of Household

Under 65                                                                                        $10,000

               65 or older OR blind                                                                     $10,850

               65 or older AND blind                                                                  $11,700

Married Filing Separate

               Under 65                                                                                        $5,250

               65 or older OR blind                                                                     $5,950

               65 or older AND blind       

For more information about the AARP Tax-Aide program, visit www.aarp.org/taxaide.  To find a Tax-aide location in Kansas visit www.kstaxaide.com.  For more information about Kansas tax law and filing state taxes, visit www.ksrevenue.org.