Tax Update: Kansas changes the rules again

Tax Update: Kansas changes the rules again

Are you prepared to pay more Kansas taxes? It’s no surprise that Kansas has been having financial issues over the past several years, and legislation passed this month attempts to fix the budget shortfalls.

Here are the big changes for those of you who pay Kansas income taxes.  

  • Business owners will once again pay taxes on their “pass through” income which was previously exempt under the Brownback plan.
  • All income tax rates will go up over the next few years (see chart below).
  • Itemized deductions will be fully reinstated over the next three years.

It’s important to note that this is retroactive back to January 1, 2017. No penalties or interest will be charged for underpayments due to these changes as long as the underpayment is paid by April 17, 2018.

New tax rates (based on taxable income):

Married Filing Joint 2016 2017 2018
 Under $30,000 2.7% 2.9% 3.1%
 $30,000 – $60,000 4.6% 4.9% 5.25%
 Over $60,000 4.6% 5.2% 5.7%

 

Other taxpayers 2016 2017 2018
Under $15,000 2.7% 2.9% 3.1%
$15,000 – $30,000 4.6% 4.9% 5.25%
 Over $30,000 4.6% 5.2% 5.7%

Percentage of federal itemized deductions allowed:

2017 2018 2019 2020
Medical 0% 50% 75% 100%
Mortgage Interest 50% 50% 75% 100%
Property Taxes 50% 50% 75% 100%
Donations 100% 100% 100% 100%

So, what do these tax changes mean for you?

Now is a good time to revisit your tax plan and adjust withholding if needed. In conjunction with your CPA, your financial planner can help determine what changes are needed, such as giving or investing strategies. We’re always here to help.

< Back to Updates

Get in Touch With an Advisor

We'd love to connect with you. Click the button below and fill out the form to talk with a Sound Stewardship advisor.

Recent Updates

5 reasons to consider a Roth conversion June 20, 2022

In March, Matt wrote about 10 smart financial moves to make during uncertain times. One of those sa…

Subscribe to Our Newsletter

Subscribe to the Sound Stewardship e-newsletter for timely money advice, financial tips and the latest from our team.
  • This field is for validation purposes and should be left unchanged.