In March 2018, KAR conveyed the potential issue around preserving Itemized Tax Deductions in Kansas. This update, as of April 7, confirms that the Senate passed a bill that includes itemized deductions starting in tax year 2018 and thereafter. Under the Senate’s bill, Kansan’s can itemize deductions in their tax filings regardless of whether or not an individual’s federal taxable income allows itemized deductions. The Kansas Senate’s version passed, but it is still tentative. The House could consider the bill when they return to session on April 26th.
In addition, the bill also accelerates the restoration of the Kansas itemized deductions to 100% in tax year 2018.
Current Kansas law has a phase-in restoration of itemized deductions. Kansans can itemize deductions for medical expenses, mortgage interest, and property taxes paid equivalent to 50% of the allowable federal amounts in tax year 2018; 75% in tax year 2018; and 100% beginning in tax year 2020.
The Senate-passed bill also increases the Kansas standard deduction by 25%. The deduction for single filers would be increased from $3,000 to $3,750; for heads of household from $5,500 to $6,875; and for married taxpayers filing jointly from $7,500 to $9,375.
REALTORS® don’t just wait and see about tax related changes for Kansas. REALTORS® ACT. 800 Kansas REALTORS® responded to KAR’s Call to Action. This means contact with members’ House and Senate members relating to this issue. When you see a KAR Call to Action, your response could help get a vote passed in favor of the Kansas REALTOR® Party and all Kansas property owners. Calls to Actions WORK. Please consider being part of the solution in Politics. Read more about Calls to Action.
School Finance Funding Package
The Kansas Legislature adjourned shortly after midnight on the morning of April 7th after passing an estimated $525 million, five-year school finance funding package. Governor Colyer expressed his support of the bill and is likely to sign the bill.
