How much is the Kansas adoption tax credit for 2024 and later?

Plain-English summary

Kansas Notice 24-20 describes changes to the Kansas adoption income tax credit made by 2024 House Bill 2465, which amended K.S.A. 79-32,202a. The statute now splits into two periods. For tax years 2014 through 2023, the earlier credit rules apply. Beginning with tax year 2024, the Kansas credit equals 100% of the federal adoption credit the taxpayer is allowed under Section 23 of the Internal Revenue Code for the year the federal credit was claimed -- figured without regard to the federal carryforward limitation in Section 23(c). This credit is available only to Kansas residents.

Separately, K.S.A. 79-32,202a(b) continues to provide an additional $1,500 credit for adopting a child who is in the custody of the Kansas Secretary for Children and Families, or a child with special needs. That $1,500 is in addition to the main credit.

The credit is claimed on Schedule K-47, filed with the Kansas income tax return.

What this means for you

Kansas residents who adopted in 2024 or later

• Your Kansas adoption credit equals 100% of the federal adoption credit you are allowed under IRC Section 23 for that year (without applying the Section 23(c) carryforward limit).
• You must be a Kansas resident to claim it.
• If you adopted a child in the custody of the Secretary for Children and Families, or a child with special needs, add the $1,500 credit under K.S.A. 79-32,202a(b).
• Claim the credit on Schedule K-47, filed with your Kansas return. The Department posts the K-47 on its website, generally by mid-December.

If you adopted in 2014-2023

The earlier version of the credit (now subsection (a)(1)) governs those years.

Common questions

How large is the Kansas credit for 2024? 100% of your allowable federal adoption credit under IRC Section 23 (determined without regard to Section 23(c)).

Do I have to be a Kansas resident? Yes -- the tax-year-2024-and-later credit is for residents only.

Is there an extra credit for special-needs or foster adoptions? Yes, an additional $1,500 under K.S.A. 79-32,202a(b) for a child in the custody of the Secretary for Children and Families or a child with special needs.

How do I claim it? File Schedule K-47 with your Kansas income tax return.

Citations and references

• House Bill 2465 (2024) -- amended the Kansas adoption credit (Section 10 of the bill).
• K.S.A. 79-32,202a -- the Kansas adoption tax credit; subsection (a)(1) covers tax years 2014-2023, and subsection (a)(2) provides the 100%-of-federal credit beginning tax year 2024 for residents.
• K.S.A. 79-32,202a(b) -- additional $1,500 credit for a child in the custody of the Secretary for Children and Families or a child with special needs.
• Internal Revenue Code Section 23 (26 U.S.C. 23) -- the federal adoption credit on which the Kansas credit is based.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 24-20

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.gov
Mark A. Burghart, Secretary Laura Kelly, Governor

                                       NOTICE 24-20

                                     ADOPTION CREDIT

                                   (NOVEMBER 20, 2024)

  During the 2024 Legislative Session House Bill 2465 was passed and signed into law.

Section 10 of the Bill amends the income tax credit for adoption.

    Section 10 amends K.S.A. 79-32,202a, dividing subsection (a) into newly labeled parts (a)(1)

and (a)(2). Subsection (a)(1) limits the current adoption credit provisions to tax years 2014 through
2023. New subsection (a)(2) provides, commencing in tax year 2024, an adoption credit, in an
amount equal to 100% of the amount of the credit allowed against such taxpayer's federal income
tax liability pursuant to section 23 of the federal internal revenue code, determined without regard
to subsection (c) of such section, for the taxable year in which such credit was claimed against the
taxpayer's federal income tax liability. The credit is available to Kansas residents only.

   K.S.A. 79-32,202a(b) provides an additional credit of $1,500 for the adoption of a child in

the custody of the Secretary for Children and Families or a child with special needs. This credit is
retained in the law and is in addition to the credit allowed in K.S.A. 79-202a(a)(1) and (2).

  The credit will be claimed by filing a Schedule K-47 with the Kansas income tax return. The

Schedule K-47 will be available through the Department's website at: www.ksrevenue.gov at the
end of the year; sometime in mid-December.

                                   TAXPAYER ASSISTANCE

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

www.ksrevenue.gov. 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