What Kansas itemized deductions are allowed for individuals starting in tax year 2015?

Plain-English summary

Kansas Notice 15-07 explains that Senate Substitute for House Bill 2109 (2015) amended K.S.A. 79-32,120 to stop the phase-down of the Kansas itemized deduction and, beginning in tax year 2015, allow only three categories of deductions subject to percentage limits.

The Kansas itemized deduction is 60% of the total of these three items:

• 100% of charitable contributions that qualify under section 170 of the Internal Revenue Code;
• 50% of qualified residence (mortgage) interest under section 163(h); and
• 50% of taxes on real and personal property under section 164(a).

Other federal itemized deductions are no longer allowed for Kansas purposes.

What this means for you

Individuals who itemize

• From 2015 on, only charitable gifts (counted at 100%), mortgage interest (50%), and real/personal property taxes (50%) count -- and the total is then multiplied by 60% to get the Kansas itemized deduction.
• Other deductions you may have taken federally (for example, medical expenses) are not part of the Kansas itemized deduction under this notice.

Common questions

Which deductions still count for Kansas? Charitable contributions, qualified residence interest, and real and personal property taxes.

How are they limited? Charitable at 100%, mortgage interest at 50%, property taxes at 50% -- then the total is multiplied by 60%.

When did this start? Tax year 2015.

Citations and references

• Senate Substitute for House Bill 2109 (2015), Section 26 -- amended K.S.A. 79-32,120 to limit the Kansas itemized deduction, beginning tax year 2015, to 60% of (100% charitable + 50% mortgage interest + 50% property taxes).
• The three federal references are IRC sections 170, 163(h), and 164(a).

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 15-07

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 15-07

                     ITEMIZED DEDUCTIONS FOR INDIVIDUAL INCOME TAX
                                     (JULY 1, 2015)

 During the 2015 Legislative Session Senate Substitute for House Bill 2109 was passed and

signed into law. This Bill addressed deductions for individuals for Kansas income tax purposes.

  K.S.A. 79-32,120, which expressly allows itemized deductions, was amended in Section 26

of Senate Substitute for House Bill 2109. The new language stops the phase-down of the amount
of the itemized deduction to be allowed, and instead, commencing with tax year 2015, permits
only three categories of deductions which are subject to percentage limitations. The amended
language of the statute now allows Kansas itemized deductions only for (stricken language and
new language):

       (4) For the tax year years commencing on and after January 1, 2015, the Kansas
 itemized deduction of an individual means 60% of the total amount of following
 deductions from federal adjusted gross income, other than federal deductions for
 personal exemptions, as provided in the federal internal revenue code with the
 modifications specified in this section: (A) 100% of charitable contributions that
 qualify as charitable contributions allowable as deductions in section 170 of the
 federal internal revenue code; (B) 50% of the amount of qualified residence interest
 as provided in section 163(h) of the federal internal revenue code; and (C) 50% of
 the amount of taxes on real and personal property as provided in section 164(a) of
 the federal internal revenue code.

                                  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