If any due date falls on a Saturday, Sunday, or legal holiday, substitute the next regular work day
If you are an individual taxpayer (including farmer or fisher), use this schedule to determine if your income tax was fully paid throughout the year by withholding and/or estimated tax payments. If your 2007 tax due (line 17 of the K-40 – Do Not include compensating tax from line 18 of the K-40), less withholding and tax credits (excluding estimated tax payments made) is $500 or more, you may be subject to an underpayment of estimated tax penalty and must complete this form.
Taxpayers (other than farmers or fishers) are not required to make a payment for the January 15th quarter if a Form K-40 was filed and the tax was paid in full on or before January 31, 2008.
If at least two-thirds of your annual gross income is from farming or fishing and you filed Form K-40 and paid the tax on or before March 1, 2008, you may be exempt from any penalty for underpayment of estimated tax. If so, enter on line 1, "Exempt-farmer/fisher", and do not complete the rest of this schedule.
However, if you meet this gross income test, but did not file a return and pay the tax on or before March 1, 2008, you must use this schedule to determine if you owe a penalty for underpayment of estimated tax.
Enter your name and your Social Security number in the space provided at the top of this schedule.
Lines 1 through 4: Complete these lines based on information on your income tax return for this tax year and the prior tax year.
Important: If you did not file an income tax return for the prior tax year, or if you did file a return but your income tax balance (line 17, Form K-40) was zero, then enter zero on Line 3 of this schedule.
You will not be subject to a penalty if your 2007 tax payments (line 7) equal or exceed the amounts for one of the exceptions (lines 8 or 9a or 9b) for the same payment period.
Line 5: Multiply the amount on line 4 by the percentage shown in each column of line 5.
Line 6: Enter the cumulative amount of timely paid estimated tax payment made in each quarter. For example, Column 3 will be the total of your withholding and estimated tax payments made from January 1 through September 15, 2007.
Line 7: For each column, add lines 5 and 6 and enter the result on line 7.
Line 8: Exception 1 applies if the amount on line 7 of a column equals or exceeds the amount on line 8 for the same column. Multiply line 2 or 3 (whichever is less) by the percentages shown in each column of line 8. If the amount on line 7 (for each column) is equal to or greater than the amount on line 8 (for each column) – no penalty is due – no further entries are required.
Line 9: Exception 2 applies if your 2007 tax payments equal or exceeds 90% (66 2/3% for farmers and fishers) of the tax on your annualized income for these 2007 periods:
January 1 – March 31 |
Multiply income by 4 |
January 1 – May 31 |
Multiply income by 2.4 |
January 1 – August 31 |
Multiply income by 1.5 |
January 1 – December 31 |
Multiply income by 1 |
This exception applies if the amount on line 7 exceeds the amount on line 9a or 9b (as applicable). If you are a farmer or fisher, you will only complete the last column on line 9b.
For example, to figure the first column, total your income from January 1 to March 31, 2007 and multiply by 4. Subtract your deductions (standard or itemized) and your exemption allowance amount. Using this net annualized income figure, and your 2007 Kansas Income Tax Booklet, figure the tax. Multiply the tax by the percentage rate in the first column.
Repeat these instructions for the remaining three columns, using the multiplication factors given above to annualize the income for that period. Enclose a schedule showing your computation of annualized income and tax amounts. If the amount on line 7 (for each column) is equal to or greater than the amount on line 9a (for each column), or line 9b, for farmers or fishers – no penalty is due – no further entries are required.
Line 10: Enter on line 10 the amount of underpayment of tax, which is the lesser of one of the following computations:
Line 8 less line 7; or,
Line 9a less line 7; or,
Line 9b less line 7
Line 11: This line contains the due date of each installment for a calendar year taxpayer.
Line 12: The number of days on line 12 are precomputed for a calendar year taxpayer that made timely payments. If you did not make timely payments, you should disregard the precomputed number of days on line 12 and compute the number of days on each quarter to the date paid.
Example: If you paid the 6/15/07 installment on 6/28/07 the number of days to enter on line 12, column 2 will be computed from 6/15/07 to 6/28/07, which equals 13 days. If you then paid the next quarter timely at 9/15/07, the number of days will be from 9/15/07 to 1/15/07, which equals the 122 days (107 + 15) already entered.
Line 13: The 9% penalty rate begins in column 3 for a calendar year taxpayer, therefore no entry is required in columns 1 and 2. The 15 days in the third column are from 1/1/08 to 1/15/08. If you did not make timely payments, you should disregard the precomputed number of days on line 13 and compute the number of days on each quarter to the date paid.
If you file your return prior to 1/15/08, enter in the third column the number of days from 1/1/07 to the date filed and disregard the precomputed number of days (15) entered on line 13.
The fourth column must be completed by you. Enter the number of days from 1/15/08 to the date the return was filed and paid.
Line 14 & 15: Penalty is computed at 9% for both the 2007 and 2008 periods.
Line 16: For each column, add lines 14 and 15 and enter the result on line 16.
Line 17: Add the amounts on line 16 together and enter the result on line 17. Also enter this amount on Form K-40, line 32, Estimated Tax Penalty.