What's New in Kansas Tax Law

Highlights for 2007

Social Security Benefits

Social security benefits are no longer subject to Kansas tax if your federal adjusted gross income income is less than $50,000.

KPERS Retirement Benefits

KPERS retirement benefits, and all earnings thereon, that are rolled over into a qualified retirement account (i.e., 401K, IRA, etc.) are not subject to Kansas income tax even if the KPERS benefits are segregated from, or commingled with, other retirement funds.

Food Sales Tax Qualifying Income Increased 

Income amounts for the food sales tax refund have increased and are as follows. If your income is below $14,850, your refund is $78 per exemption. If your income is between $14,851 and $29,700, your refund is $38 per exemption.

Learning Quest and Other Qualified Tuition Programs

In addition to the subtraction for contributions to the Learning Quest Education Savings Plan, a subtraction is now available for contributions made to other states'  qualified tuition plans (also called 529 plans).

Kansas Earned Income Credit

The Kansas earned income credit has increased to 17% of the federal credit.

Long-term Care Insurance Contracts

The subtraction for  the premium costs paid for qualified long-term care insurance contracts has increased to $700 per contract, per taxpayer.

New Credits

The following credits are new for 2007

Revised Credits

The following credits have been revised for 2007