Kansas Tax Changes - November 2024
Week Of 11.21.2024
Kansas Adoption Tax Credit Changes
The Kansas Department of Revenue has announced changes to the adoption tax credit, effective for tax year 2024 and beyond. These changes are based on amendments made in L. 2024, H2465.
Key Changes:
- Previous Credit: The current adoption tax credit provisions apply only to tax years 2014 through 2023.
- New Credit: For tax year 2024 and onward, a new adoption credit is available. This credit is equal to 100% of the amount allowed as a federal adoption tax credit under IRC § 23, excluding IRC § 23(c). This credit is only available to Kansas residents.
- Additional Credit: The $1,500 additional credit for adopting children in the custody of the Secretary for Children and Families or children with special needs remains in effect.
Claiming the Credit:
To claim the adoption tax credit, Kansas residents must file Schedule K-47 with their Kansas income tax return.
Source: Kansas Revenue Department Public Notice No. 24-20, 11/20/2024.
Week Of 11.21.2024
Kansas Corporate Income Tax—Kansas adoption credit guidance.
The Kansas Department of Revenue has issued guidance regarding changes to the adoption tax credit, based on amendments in L. 2024, H2465, effective from and after publication in the statute book (reported in State Tax Update, 05/01/2024). New subsection Kan. Stat. Ann. § 79-32,202a(a)(1) limits the current credit provisions to tax years 2014 through 2023. Another new subsection, Kan. Stat. Ann. § 79-32,202a(a)(2), provides, beginning tax year 2024, an adoption credit that equals 100% of the amount of the credit allowed against a resident individual’s tax liability pursuant to IRC § 23, without regard to IRC § 23(c), for the tax year in which the credit was claimed against the taxpayer's federal income tax liability. The credit is only available to Kansas residents. In addition to the credit in Kan. Stat. Ann. § 79,32,202a(a), the additional credit of $1,500 for the adoption of a child in the custody of the Secretary for Children and Families or a child with special needs is retained in Kan. Stat. Ann. § 79,32,202a(b). The adoption credit can be claimed by filing a Schedule K-47 with a Kansas income tax return. (Kansas Revenue Department Public Notice No. 24-20, 11/20/2024.)
Kansas Credits and Incentives—Kansas adoption credit guidance.
The Kansas Department of Revenue has issued guidance regarding changes to the adoption tax credit, based on amendments in L. 2024, H2465, effective from and after publication in the statute book (reported in State Tax Update, 05/01/2024). New subsection Kan. Stat. Ann. § 79-32,202a(a)(1) limits the current credit provisions to tax years 2014 through 2023. Another new subsection, Kan. Stat. Ann. § 79-32,202a(a)(2), provides, beginning tax year 2024, an adoption credit that equals 100% of the amount of the credit allowed against a resident individual’s tax liability pursuant to IRC § 23, without regard to IRC § 23(c), for the tax year in which the credit was claimed against the taxpayer's federal income tax liability. The credit is only available to Kansas residents. In addition to the credit in Kan. Stat. Ann. § 79,32,202a(a), the additional credit of $1,500 for the adoption of a child in the custody of the Secretary for Children and Families or a child with special needs is retained in Kan. Stat. Ann. § 79,32,202a(b). The adoption credit can be claimed by filing a Schedule K-47 with a Kansas income tax return. (Kansas Revenue Department Public Notice No. 24-20, 11/20/2024.)
Kansas Personal Income Tax—Kansas adoption credit guidance.
The Kansas Department of Revenue has issued guidance regarding changes to the adoption tax credit, based on amendments in L. 2024, H2465, effective from and after publication in the statute book (reported in State Tax Update, 05/01/2024). New subsection Kan. Stat. Ann. § 79-32,202a(a)(1) limits the current credit provisions to tax years 2014 through 2023. Another new subsection, Kan. Stat. Ann. § 79-32,202a(a)(2), provides, beginning tax year 2024, an adoption credit that equals 100% of the amount of the credit allowed against a resident individual’s tax liability pursuant to IRC § 23, without regard to IRC § 23(c), for the tax year in which the credit was claimed against the taxpayer's federal income tax liability. The credit is only available to Kansas residents. In addition to the credit in Kan. Stat. Ann. § 79,32,202a(a), the additional credit of $1,500 for the adoption of a child in the custody of the Secretary for Children and Families or a child with special needs is retained in Kan. Stat. Ann. § 79,32,202a(b). The adoption credit can be claimed by filing a Schedule K-47 with a Kansas income tax return. (Kansas Revenue Department Public Notice No. 24-20, 11/20/2024.)
Week Of 11.21.2024
Kansas Corporate Income Tax—Kansas adoption credit guidance.
The Kansas Department of Revenue has issued guidance regarding changes to the adoption tax credit, based on amendments in L. 2024, H2465, effective from and after publication in the statute book (reported in State Tax Update, 05/01/2024). New subsection Kan. Stat. Ann. § 79-32,202a(a)(1) limits the current credit provisions to tax years 2014 through 2023. Another new subsection, Kan. Stat. Ann. § 79-32,202a(a)(2), provides, beginning tax year 2024, an adoption credit that equals 100% of the amount of the credit allowed against a resident individual’s tax liability pursuant to IRC § 23, without regard to IRC § 23(c), for the tax year in which the credit was claimed against the taxpayer's federal income tax liability. The credit is only available to Kansas residents. In addition to the credit in Kan. Stat. Ann. § 79,32,202a(a), the additional credit of $1,500 for the adoption of a child in the custody of the Secretary for Children and Families or a child with special needs is retained in Kan. Stat. Ann. § 79,32,202a(b). The adoption credit can be claimed by filing a Schedule K-47 with a Kansas income tax return. (Kansas Revenue Department Public Notice No. 24-20, 11/20/2024.)
Kansas Credits and Incentives—Kansas adoption credit guidance.
The Kansas Department of Revenue has issued guidance regarding changes to the adoption tax credit, based on amendments in L. 2024, H2465, effective from and after publication in the statute book (reported in State Tax Update, 05/01/2024). New subsection Kan. Stat. Ann. § 79-32,202a(a)(1) limits the current credit provisions to tax years 2014 through 2023. Another new subsection, Kan. Stat. Ann. § 79-32,202a(a)(2), provides, beginning tax year 2024, an adoption credit that equals 100% of the amount of the credit allowed against a resident individual’s tax liability pursuant to IRC § 23, without regard to IRC § 23(c), for the tax year in which the credit was claimed against the taxpayer's federal income tax liability. The credit is only available to Kansas residents. In addition to the credit in Kan. Stat. Ann. § 79,32,202a(a), the additional credit of $1,500 for the adoption of a child in the custody of the Secretary for Children and Families or a child with special needs is retained in Kan. Stat. Ann. § 79,32,202a(b). The adoption credit can be claimed by filing a Schedule K-47 with a Kansas income tax return. (Kansas Revenue Department Public Notice No. 24-20, 11/20/2024.)
Kansas Personal Income Tax—Kansas adoption credit guidance.
The Kansas Department of Revenue has issued guidance regarding changes to the adoption tax credit, based on amendments in L. 2024, H2465, effective from and after publication in the statute book (reported in State Tax Update, 05/01/2024). New subsection Kan. Stat. Ann. § 79-32,202a(a)(1) limits the current credit provisions to tax years 2014 through 2023. Another new subsection, Kan. Stat. Ann. § 79-32,202a(a)(2), provides, beginning tax year 2024, an adoption credit that equals 100% of the amount of the credit allowed against a resident individual’s tax liability pursuant to IRC § 23, without regard to IRC § 23(c), for the tax year in which the credit was claimed against the taxpayer's federal income tax liability. The credit is only available to Kansas residents. In addition to the credit in Kan. Stat. Ann. § 79,32,202a(a), the additional credit of $1,500 for the adoption of a child in the custody of the Secretary for Children and Families or a child with special needs is retained in Kan. Stat. Ann. § 79,32,202a(b). The adoption credit can be claimed by filing a Schedule K-47 with a Kansas income tax return. (Kansas Revenue Department Public Notice No. 24-20, 11/20/2024.)