Kansas Form K-40 Line by Line Guide
Did you know 9 states do not require residents to pay a personal income tax? Folks that live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, are exempt from this bill. Furthermore, 7 other states simply enforce a flat tax rate. So what's the moral to the story? People who live in these states are able to buy more stuff because they pay less tax.
But for the rest of us, residential income tax is a necessary evil, one that takes a serious bite out of our disposable income. And while the forms are designed to collect the same data, they're all constructed differently. What follows is a breakdown of Form K-40, the Kansas Individual Income Tax Return. If you don't live in Kansas, not to worry, we'll be tackling the other 34 states soon enough.
After messing with the state tax form from Iowa (the worst in the country), Kansas was a breath of fresh air. The K-40 is so simple and to the point that I'd be surprised if it took the organized taxpayer longer than 30 minutes to complete. I'm giving it an enthusiastic 9 of 10 on my user-friendly meter.
As usual, fill in your name, address, social security and phone numbers at the top. Then knock off your filing status, residency status, and exemptions before moving on to the main part of the form. See? Quick and painless.
On Line 1 enter your federal adjusted gross income, you can find it on your federal 1040, 1040a, or 1040ez form. If you need to make any changes, attach a Schedule S and enter the total from Line A19. Then add or subtract Line 2 from Line 1 to reveal your Kansas adjusted gross income, which then goes on Line 3.
On Line 4, enter either your standard or itemized deductions, whichever is higher. Then multiply the number of exemptions you claimed by a healthy $2,250 and put that total on Line 5. Now add Lines 4 and 5 with that sum going on Line 6. Next subtract Line 6 from Line 3 to get the balance of which is your taxable income and that number goes on Line 7.
Now look up your tax from the tax table, you can find it in the instruction booklet) and put that amount on Line 8. If you're a nonresident, that is, you don't live in Kansas, work through Lines 9 and 10 before proceeding. Line 11 is where you record any tax on lump sum distributions from retirement vehicles. Now add Lines 8 and 11 to get your total income tax, the sum of which goes on Line 12. Just be sure to carry forward your income tax amount to the top of page 2.
So begins my favorite part of the form, the credit section. Line 13 is for credits on taxes paid to other states, while Line 14 is for child and dependent care expenses. Line 15 is for any other applicable credits, just include the proper schedules if any apply.
Now add Lines 13 through 15 and put the total on Line 16. Next subtract Line 16 (total credits) from Line 12 (total tax) and enter the balance on Line 17. Check the instruction booklet to see if the use tax applies to you. Then add Lines 17 and 18 to get your total tax balance, which goes on Line 19.
On Line 20 enter your Kansas withholdings, you can find that number on your W-2, K-19, or 1099. On Line 21 enter any estimated tax that you've already paid and on Line 22 record the amount you've paid with a previous extension. If you qualify enter an earned income credit on Line 23 and any refundable portion of tax credits on Line 24.
If this is your original return skip down to Line 27, if not work through Lines 25 and 26. When you're ready add lines 20 through 25 before subtracting Line 26 to reveal your total refundable credits, the sum of which gets recorded on Line 27.
If Line 19 is larger than Line 27 you've underpaid, you'll need to enter the difference on Line 28. If you've incurred any interest or penalties include those amounts on Lines 29 through 31. Now add Lines 28 through 31 to reveal the exact amount of your tax liability.
If Line 19 is less than Line 27, you've overpaid, just enter the difference on Line 33. If you want a portion of Line 33 to be applied to next year, record it on Line 34. If you feel like donating money to breast cancer, the military, or the wildlife improvement fund, enter those amounts on Lines 35 through 38. When ready, subtract Lines 34 through 38 from Line 33 to get your refund.
All that's left is to sign, date, and record your phone number at the end of the return. If you need a tax pro to help you, make sure they include their name and their employer id number. See how easy that was?
The K-40 is a joy to fill out and easily one of the simplest in the country. Kudos to the Kansas department of revenue, perhaps they can show Iowa how to create a tax form.
