The recent governor’s veto raised taxes on middle-class Kansans. Federal tax reform in 2017 doubled the standard deduction, however, the State of Kansas did not. Filers who take the higher standard deduction on their federal taxes, must accept the lower standard deduction on their state taxes. Kansans are now forced to pay the state $60 million more each year in taxes and are voided the opportunity to itemize at the state level.
Due to federal tax reform in 2017, fewer middle-class Kansans are able to itemize charitable, medical, and expenses related to homeownership when they take the federal standard deduction. In Kansas, when filers take the standard deduction at the federal level, they must also take the less generous standard deduction at the state level. The problem? Fewer middle-class Kansans are able to itemize their state return and are now paying in more taxes.
Although many Kansans can easily itemize by the state standard ($7,500 for married filing joint), they simply do not have enough itemizations to exceed the new federal limits ($24,400 in 2019 for married filing joint). The result? Kansas is taking in excess tax revenue and hard-working Kansans are left unable to take tax deductions that, in the past, the Kansas Legislature has worked diligently to preserve.
Kansas Legislators passed two versions of a tax bill that would preserve this tax deduction. However, both bills were ultimately vetoed by Governor Kelly. Data provided by the Kansas Legislative Research Department shows following the change in the federal tax code, Kansas is now raking in an additional $60 million after the voiding of Kansas itemized tax deductions was allowed to happen.
These tax incentives encourage people to invest in Kansas. Homeownership strengthens our state, our communities and our families. Legislators must act on our behalf to preserve these incentives… because homeownership matters and without it – the American Dream dies. Reach out to your local legislator and let them know you support building a stronger Kansas.
