The Kansas Earned Income Tax Credit (EITC) is a refundable credit for low- to moderate-income individuals and families, designed to supplement earned income. It is calculated as 17% of the federal EITC amount claimed on the taxpayer’s federal return. The credit is claimed on Form K-40, specifically on Line 22, using the Earned Income Tax Credit (EITC) Worksheet provided on Page 8 of the form.
How to Calculate the Kansas EITC
- Enter the federal Earned Income Tax Credit (EITC) amount from your federal income tax return.
- Multiply the federal EITC amount by 17% to determine the Kansas Earned Income Tax Credit amount.
- Report the allowable Kansas EITC amount on the designated line of Form K-40 according to the Form K-40 instructions.
- If the Kansas EITC exceeds your Kansas income tax liability, the remaining amount may be refunded because the credit is refundable.
Important Considerations
- The Kansas EITC is available only to taxpayers who qualify for and claim the federal Earned Income Tax Credit.
- If the IRS calculates your federal EITC and you do not receive the calculated amount before filing your Kansas return, file your Kansas return without claiming the Kansas EITC and pay any tax due. After receiving the federal EITC information, you may file an amended Kansas return to claim the Kansas credit, if eligible.
- The Kansas EITC is refundable, meaning any allowable credit remaining after reducing Kansas tax liability may be refunded to the taxpayer.
- Taxpayers who are not required to file a Kansas income tax return should refer to the applicable Kansas refund claim forms and instructions to determine eligibility for available credits or refunds.
Source:
FORM K-40
Disclaimer: Always verify details with the most current forms and instructions from the Kansas Department of Revenue or consult a tax professional for personalized advice.