Kansas requires taxpayers to make certain adjustments to their Federal Adjusted Gross Income (AGI) when filing their state income tax return. These adjustments are reported on Schedule S, specifically in Part A – Modifications to Federal Adjusted Gross Income, under the section titled Additions to Federal Adjusted Gross Income. This section includes income that is not taxed or included on the federal return but is taxable to Kansas.
Key Additions to Federal AGI for Kansas
- Line A1: Interest from State or Municipal Obligations – Include interest income received, credited, or earned during the taxable year from state and municipal obligations issued outside Kansas that was excluded from federal adjusted gross income but is taxable to Kansas. Reduce the addition by any related expenses that were deducted on the federal return and are directly attributable to this interest income. Interest from obligations issued by the State of Kansas or its political subdivisions is generally exempt from Kansas income tax and is not included as an addition.
- Line A3: Kansas Expensing Recapture – Report any required recapture of Kansas expensing deductions previously claimed under Kansas law. Taxpayers should attach any required supporting schedules or documentation to substantiate the recapture amount.
Important Considerations
- These additions ensure that Kansas taxable income includes certain amounts that were excluded from federal adjusted gross income but are taxable under Kansas law.
- Taxpayers must complete the applicable addition lines on Schedule S if they have income or adjustments that are required to be added back to federal AGI for Kansas purposes.
- Supporting documentation, including required schedules for recapture items, must be retained or attached as instructed.
Source:
Kansas Schedule S
Disclaimer: Always verify details with the official forms and instructions from the Kansas Department of Revenue and the IRS. Tax situations vary; consult a CPA or tax professional for personalized advice.