Can I itemize on my Kansas return without itemizing federally, and what is the new standard deduction?

Plain-English summary

Kansas Notice 21-02 explains two changes to individual deductions made by 2021 Senate Bill 50, effective for tax year 2021 and after.

Standard deduction (Section 9 -- K.S.A. 79-32,119). New subsection (c)(2) sets the standard deduction at $3,500 (single), $8,000 (married filing jointly), and $6,000 (head of household). As applied by the Department, the base standard deduction is $3,500 single, $8,000 married filing jointly, $4,000 married filing separately, and $6,000 head of household.

Itemized deductions decoupled (Section 10 -- K.S.A. 79-32,120). New subsection (a)(1)(B) provides that, for tax year 2021 and after, an individual may elect the Kansas itemized deduction in lieu of the Kansas standard deduction, regardless of whether their federal taxable income was determined by itemizing. Before this change (through 2020), a taxpayer could itemize on the Kansas return only if they itemized on their federal return. Now a Kansas taxpayer can choose either the standard or itemized deduction on the Kansas return regardless of how deductions are claimed federally.

The four itemized categories. Under renumbered K.S.A. 79-32,120(a)(5), for tax years on and after January 1, 2020, the Kansas itemized deduction means the following (from federal adjusted gross income, other than personal exemptions):

• 100% of charitable contributions allowable under IRC section 170;
• 100% of medical care expenses allowable under IRC section 213;
• 100% of qualified residence interest under IRC section 163(h); and
• 100% of taxes on real and personal property under IRC section 164(a).

To claim itemized deductions, the taxpayer must complete a separate schedule provided by the Department and include it with the Kansas income tax return.

What this means for you

Kansas individual filers

• For 2021 and later, you can itemize on your Kansas return even if you took the standard deduction on your federal return -- so compare both ways for Kansas.
• The Kansas standard deduction is now $3,500 (single), $8,000 (married filing jointly), $4,000 (married filing separately), and $6,000 (head of household).

Taxpayers with large deductions

• If your Kansas itemized deductions (charitable gifts, medical, home mortgage interest, and property taxes) exceed the standard deduction, you can now claim them on a separate Kansas schedule regardless of your federal choice.

Common questions

What are the new standard deduction amounts? $3,500 single, $8,000 married filing jointly, $4,000 married filing separately, and $6,000 head of household.

Can I itemize on Kansas without itemizing federally? Yes -- for tax year 2021 and after you may elect the Kansas itemized deduction regardless of your federal choice.

What can be itemized on the Kansas return? 100% of charitable contributions, medical expenses, qualified residence interest, and real and personal property taxes.

How do I claim Kansas itemized deductions? Complete the separate schedule provided by the Department and include it with your Kansas income tax return.

Citations and references

• Senate Bill 50 (2021), Sections 9 and 10 -- raised the standard deduction and decoupled Kansas itemizing from federal.
• K.S.A. 79-32,119 -- standard deduction; new subsection (c)(2) sets the amounts.
• K.S.A. 79-32,120 -- itemized deductions; new subsection (a)(1)(B) allows electing to itemize regardless of the federal return, with the four listed categories.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 21-02

Original ruling text

Policy and Research
109 SW 9th Street Phone: 785-368-8222
PO Box 3506 Fax: 785-296-1279
Topeka KS 66601-3506 www.ksrevenue.org
Mark A. Burghart, Secretary Laura Kelly, Governor

                                       NOTICE 21-02

                    CHANGES TO DEDUCTIONS FOR INDIVIDUALS
                                      (JULY 29, 2021)

Standard Deduction

   During the 2021 Legislative Session Senate Bill 50 was passed and signed into law. This

Bill amended K.S.A. 79-32,119 to change the standard deduction for individuals filing Kansas
income tax returns. Specifically, Section 9 of the Bill includes new statutory language, found in
subsection (c)(2), which provides:

         (2) For tax year 2021, and all tax years thereafter, the standard deduction amount
   of an individual, including husband and wife who are either both residents or who file
   a joint return as if both were residents, shall be as follows: Single individual filing
   status, $3,500; married filing status, $8,000; and head of household filing status,
   $6,000.

  In accordance with the new law, for tax years 2021, and all subsequent tax years, the base

standard deduction will be: $3,500 for single filing status; $8,000 for married filing joint status;
$4,000 for married filing separate status; and $6,000 for head of household filing status.

Itemized Deductions

   Senate Bill 50 also amended K.S.A. 79-32,120 to expand the ability to claim itemized

deductions for individuals filing Kansas income tax returns. Specifically, Section 10 of the Bill
includes new statutory language, found in subsection (a)(1)(B), which provides:

         (B) For tax year 2021, and all tax years thereafter, an individual may elect to
   deduct the Kansas itemized deduction in lieu of the Kansas standard deduction,
   regardless of whether or not such individual's federal taxable income is determined by
   itemizing deductions from such individual's federal adjusted gross income.

   For tax years prior to and through 2020, an individual could deduct itemized deductions from

their Kansas income tax return only if they had deducted itemized deductions on their federal
income tax return. This change in the law now allows Kansas taxpayers to use itemized deductions
whether or not they itemize on their federal return. Effective for tax year 2021, and all subsequent
tax years, a taxpayer has the option of claiming either a standard deduction or an itemized
deduction on their Kansas return, regardless of how deductions are claimed on their federal return.

  In accordance with K.S.A. 79-32,120, four categories of deductions may be claimed as

itemized deductions. Specifically, renumbered subsection (a)(5) of the statute provides:

       (7) (5) For the tax years commencing on and after January 1, 2020, the Kansas
 itemized deduction of an individual means the following deductions from federal
 adjusted gross income, other than federal deductions for personal exemptions, as
 provided in the federal internal revenue code with the modifications specified in this
 section: (A) 100% of charitable contributions that qualify as charitable contributions
 allowable as deductions in section 170 of the federal internal revenue code; (B) 100%
 of expenses for medical care allowable as deductions in section 213 of the federal
 internal revenue code; (C) 100% of the amount of qualified residence interest as
 provided in section 163(h) of the federal internal revenue code; and (D) 100% of the
 amount of taxes on real and personal property as provided in section 164(a) of the
 federal internal revenue code.

 In order to claim itemized deductions it will be necessary to complete a separate schedule,

provided by the Department of Revenue, and include it when filing the Kansas income tax return.

                                TAXPAYER ASSISTANCE

 Additional copies of this notice, forms or publications are available from our web site,

www.ksrevenue.org. If you have questions about this Notice, please contact:

                             Taxpayer Assistance Center
                            Kansas Department of Revenue
                            Scott Office Building, 1st Floor
                                   120 SE 10th Ave
                                    P. O. Box 3506
                               Topeka, KS 66601-3506
                                 Phone: 785-368-8222
                                  Fax: 785-291-3614