Additions to Federal Adjusted Income
Many Kansas taxpayers have income that is exempt from federal taxation, but is taxable to Kansas. These adjustments to income are called Modifications to Federal Adjusted Gross Income, and are reported on Kansas Schedule S, Part A. Please enter any amounts applicable to you here. Here are the most common modifications:
- State and Municipal Bond Interest - Enter interest income received, credited or earned by you during the taxable year from any state or municipal obligations such as bonds and mutual finds. Reduce the income amount by any related expenses (such as management or trustee fees) directly incurred in purchasing these state or political subdivision obligations.
DO NOT include interest income on obligations of the state of Kansas or any Kansas political subdivision issued after December 31,1987, or the following bonds exempted by Kansas law:
- Board of Regents Bonds for Kansas Colleges and Universities
- Electrical Generation Revenue Bonds
- Industrial Revenue Bonds
- Kansas Highway Bonds
- Kansas Turnpike Authority Bonds
- Urban Renewal Bonds
If you are a shareholder in a fund that invests in both Kansas and other states bonds, only the Kansas bonds are exempt. Use the information provided by your fund administrator to determine the amount of taxable (non-Kansas) bond interest to enter.
- Contributions to Public Employees Retirement Systems. The amount you contributed from your salary to the Kansas Public Employees Retirement System is not taxable on your Federal return but is taxable on the Kansas return. Therefore, you must report this amount here to be included on Kansas Schedule S, Part A, line A2.
To determine the amount to be reported on your Kansas income tax return, you must subtract the amount shown on your W-2 in the wages, tips and compensation income box from the amount shown in the state and local wages income box on your W-2. Some employers will provide this figure for you on your W-2, indicating the amount is KPERS. Enter this amount here.
Retired Employees: If you are receiving RETIREMENT checks from KPERS, the amount of your retirement income is subtracted on line A9 - Exempt Retirement Benefits. Make no entry here unless you also made contributions to KPERS during 2004 (for example, you retired in 2004).
- Federal Net Operating Loss Carry Forward - Enter any Federal net operating loss carry forward claimed on your 2005 Federal income Tax Return.
- Contributions to a Regional Foundation - Enter the amount of any charitable contribution claimed on your federal return used to compute the Regional Foundation Community Contribution Credit on Schedule K-32.
- Other Additions to Federal Adjusted Gross Income
Enter the following additions to your federal adjusted gross income:
- Individual Development Account. CONTRIBUTORS: Enter the amount of the contribution claimed to the extent the same is the basis for claiming the Individual Development Account Credit on Schedule K-68. ACCOUNT HOLDERS: Enter amounts received as withdrawals that are not used to pay for education expenses; job training costs; purchase of primary residence; or major repairs or improvement to a primary residence.
- Federal Income Tax Refund. As a general rule, there will be no entry here unless you amended your federal return for a prior year due to an investment credit carry-back or a net operating loss carry back which resulted in you receiving a Federal Income Tax refund in 2005 for that prior year.
- Disabled Access Credit Modification. Amount of any depreciation deduction or business expense deduction claimed on your federal return that was used to determine the Disabled Access Credit on Schedule K-37.
- Partnership, S Corporation or Fiduciary Adjustments. If you received income from a partnership, S corporation, joint venture, syndicate, estate or trust, enter your proporti