These are items of income that are taxable on your Federal return but are not taxable to Kansas.

Interest on U.S. Government Obligations Enter any interest or dividend income received from obligations or securities of any authority, commission or instrumentality of the United States and its possessions that was included in your federal adjusted gross income. This includes U.S. Savings Bonds, U.S. Treasury Bills, and the Federal Land Bank. You must reduce the interest amount by any related expenses (such as management or trustee fees) directly incurred in the purchase of these securities. If you are a shareholder in a mutual fund that invests in both exempt and taxable federal obligations, only that portion of the distribution attributable to the exempt federal obligations may be subtracted here. Retain a schedule showing the name of each U.S. Government obligation interest deduction claimed, as the department at a later date may request it. Interest from the following are taxable to Kansas and may NOT be entered on this line:

• Federal National Mortgage Association (FNMA)
• Government National Mortgage Association (GNMA)
• Federal Home Loan Mortgage Corporation (FHLMC)

State or Local Income Tax Refund Enter any state or local income tax refund included as income on your federal return.

Kansas Net Operating Loss Carry Forward Enter the amount from line 15 of Schedule CRF if it is the first year of carry-forward OR line 17 a-j of Schedule CRF if it is any of the years following. Enclose a Schedule CRF for each loss year.

Exempt Retirement Benefits If you are receiving retirement benefits/pay, use this line to report retirement benefits exempt from Kansas Income Tax. For example, KPERS retirement benefits are subject to Federal Income Tax, but exempt from Kansas Income Tax. YOU WILL NEED TO MAKE A SPECIFIC ENTRY on Schedule S to report these exempt benefits. On line A10 enter the total amount of benefits received from these plans that was included in your Federal adjusted gross income. You do not need to enclose copies of the 1099R forms with your return but keep copies for your records in case the Department of Revenue requires verification of the amount claimed.

• Federal Retirement Benefits:
Federal Civil Service Retirement or Disability Fund payments and any other amounts received as retirement benefits from employment by the Federal government or for service in the United States Armed Forces.
• Kansas Pension Plans:
• Kansas Public Employees Retirement Annuities
Kansas Police and Firemens Retirement System Pensions
Kansas Teachers Retirement Annuities
Kansas Highway Patrol Pensions
Justices and Judges Retirement System
Board of Public Utilities
Income from retirement annuity contracts purchased for faculty and others employed by the State Board of Regents or by educational institutions under its management with either their direct contributions or through salary reduction plans.
Certain pensions received from Kansas first class cities that are not covered by the Kansas Public Employees Retirement System
• Railroad Retirement Benefits:
Any retirement plan administered by the U.S. Railroad Retirement Board, including U.S. Railroad Retirement Benefits, tier I, tier II, dual vested benefits, and supplemental annuities.

Military Compensation of a Nonresident Service member Enter on line A11, the amount of the military compensation earned in Tax Year 2005 only if you are a nonresident of the state of Kansas. See MILITARY PERSONNEL on page 11.

Qualified Long-Term Care Insurance Contracts Enter an amount not exceeding $500 per contract of the premium costs paid for qualified long-term care insurance contracts as defined by Public Law 104-191, section 7702B paragraph (b). Back