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|
|$30,000 – $60,000||4.6%||4.9%||5.25%|
|$15,000 – $30,000||4.6%||4.9%||5.25%|
Percentage of federal itemized deductions allowed:
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