Which Kansas taxpayers owe zero income tax starting in tax year 2016?

Plain-English summary

Kansas Notice 15-05 explains that House Substitute for Senate Bill 270 (2015 Legislature) added a new subsection (f) to K.S.A. 79-32,110 exempting certain lower-income taxpayers from income tax beginning in tax year 2016.

The exemption. For tax year 2016 and all years thereafter:

• Married individuals filing joint returns with Kansas taxable income of $12,500 or less, and
• all other individuals with taxable income of $5,000 or less,

have a tax liability of zero.

How taxable income is figured. Kansas taxable income (K.S.A. 79-32,116) starts with federal adjusted gross income, applies the Kansas modifications in K.S.A. 79-32,117, and then subtracts Kansas deductions and personal exemptions.

What this means for you

Lower-income individuals and couples

• Starting with the 2016 tax year, joint filers at or below $12,500 of Kansas taxable income, and other filers at or below $5,000, owe no Kansas income tax.

Common questions

When does the zero-liability rule start? Tax year 2016.

What are the thresholds? $12,500 or less of Kansas taxable income for joint filers; $5,000 or less for all other individuals.

Is this based on federal or Kansas taxable income? Kansas taxable income, computed from federal adjusted gross income with Kansas modifications, deductions, and exemptions.

Citations and references

• House Substitute for Senate Bill 270 (2015), Section 3 -- added K.S.A. 79-32,110(f) giving zero tax liability to joint filers at or below $12,500 and others at or below $5,000, beginning tax year 2016.
• K.S.A. 79-32,116 / 79-32,117 -- how Kansas taxable income and modifications are computed.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 15-05

Original ruling text

Policy & Research Phone: 785-296-3081
915 SW Harrison St FAX: 785-296-7928
Topeka KS 66612-1588 www.ksrevenue.org
Nick Jordan, Secretary Department of Revenue Sam Brownback, Governor
Richard Cram, Director

                                     NOTICE 15-05

                     CERTAIN INDIVIDUALS EXEMPT FROM INCOME TAX
                              BEGINNING IN TAX YEAR 2016
                                     (JULY 1, 2015)

  During the 2015 Legislative Session House Substitute for Senate Bill 270 was passed and

signed into law. Section 3 of the Bill amends K.S.A. 79-32,110, the statute which establishes the
rates of income tax in Kansas.

 In addition to adjusting the rate of tax, Section 3 of the Bill also adds a new subsection to

K.S.A. 79-32,110 which exempts certain taxpayers from income tax, starting with tax year 2016.
This provision, new subsection (f), provides:

        (f) Notwithstanding the provisions of subsections (a) and (b), for tax year 2016,
 and all tax years thereafter, married individuals filing joint returns with taxable
 income of $12,500 or less, and all other individuals with taxable income of $5,000 or
 less, shall have a tax liability of zero.

  The Kansas taxable income of an individual (see K.S.A. 79-32,116) is computed by adding

or subtracting any Kansas modifications (see K.S.A. 79-32,117) to or from his or her federal
adjusted gross income (to arrive at their Kansas adjusted gross income) and then subtracting his
or her Kansas deductions and Kansas personal exemptions.

                                 Taxpayer Assistance

Additional copies of this notice, forms or publications are available from our web site,
www.ksrevenue.org. If you have questions about this Notice, please contact:

                              Taxpayer Assistance Center
                             Kansas Department of Revenue
                             915 SW Harrison St., 1st Floor
                               Topeka, KS 66612-1588
                                 Phone: 785-368-8222
                                  Fax: 785-291-3614