When did Kansas raise the minimum tax that requires individuals to pay estimated income tax?

Plain-English summary

The 2004 Kansas Legislature (2004 SB 147, Section 5) raised the threshold for individual estimated income tax from $200 to $500 under K.S.A. 79-32,101.

Under the amended rule, an individual must pay estimated tax if they can reasonably expect to owe, after withholding and credits, at least $500, and expect their withholding and credits to be less than (A) 90% of the tax shown on the current-year return or (B) 100% of the tax shown for the prior year.

The change was effective July 1, 2004 for tax year 2004, so it could affect the 3rd and 4th quarterly estimated installments for 2004.

What this means for you

If your expected Kansas tax after withholding and credits is under $500, you no longer have to make estimated payments (up from the old $200 line). If you expect to owe $500 or more and your withholding won't cover the safe-harbor percentages, keep making quarterly estimates to avoid an underpayment penalty. Check the current threshold before relying on this 2004 figure.

Common questions

Q: What is the new estimated-tax threshold?
A: $500 in expected tax after withholding and credits, up from $200, under K.S.A. 79-32,101.

Q: When did the change take effect?
A: July 1, 2004, for tax year 2004.

Q: Who must pay estimated tax?
A: An individual who expects to owe at least $500 after withholding and credits and expects those to be less than 90% of the current year's tax or 100% of the prior year's tax.

Q: Did it affect 2004 payments already underway?
A: Yes. Because it took effect mid-year, it could change the 3rd and 4th quarterly installment amounts for 2004.

Citations and references

• K.S.A. 79-32,101 -- individual estimated income tax requirement.
• 2004 Senate Bill 147, Section 5 -- raised the threshold from $200 to $500, effective July 1, 2004.

Subject

Individual Estimated Income Tax Rules Changed

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 04-03

Original ruling text

Notice
Notice Number: 04-03
Tax Type: Withholding and Declaration of Estimated Tax; Individual Income Tax
Brief Description: Individual Estimated Income Tax Rules Changed
Keywords:
Approval Date: 06/28/2004

Body:
Director of Taxation
Kansas Department of Revenue

                                                  Notice 04-03
                               Individual Estimated Income Tax Rules Changed

The 2004 Kansas Legislature (2004 SB 147, Section 5) has increased the minimum amount of tax required for individual
estimated income tax from $200 to $500 as required by K.S.A. 79-32,101.

“ … Every individual shall pay estimated tax who can reasonably expect to owe, after withholding and credits, tax of at
least $500 and who expects their withholding and credits to be less than (A) 90% of the tax shown on the return for the
current year or (B) 100% of the tax shown for the preceding tax year;”

This change is effective July 1, 2004 for tax year 2004, and may, therefore, affect the 3rd and 4th quarterly individual
estimated income tax installment amounts for tax year 2004.

Taxpayer Assistance: If you have questions about this notice contact the Department of Revenue.

                                          Taxpayer Assistance Center
                                     Docking State Office Building, 1st Floor
                                              915 SW Harrison St.
                                            Topeka, KS 66625-2007

                                             Phone: (785) 368-8222
                                              www.ksrevenue.org

Date Composed: 06/28/2004 Date Modified: 06/28/2004

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