Must a non-resident professional athlete or entertainer who earns Kansas-source income file a Kansas income tax return?

Plain-English summary

The Department answered a question about how Kansas income tax reaches non-resident professional athletes and entertainers who earn money from Kansas sources — for example, from a game or performance held in Kansas. The Department advised that such non-residents must file a Kansas individual income tax return, no matter how small the Kansas-source income is. It noted at the outset that the reply "is an informational letter only and not a private letter ruling pursuant to K.A.R. 92-19-59."

The core statement: "non-resident professional athletes and entertainers who receive income from Kansas sources, would be obligated to file a Kansas individual income tax return, regardless of the amount of Kansas source income received."

To help compute the Kansas-taxable portion, the Department pointed to the nonresident allocation section of the Kansas Individual Income Tax Booklet and enclosed the 1997 tax-year publication. (Nonresident allocation is the mechanism by which a nonresident reports total income and then allocates the Kansas-source share that Kansas taxes.)

What this means for you

Non-resident athletes and entertainers

If you perform or compete in Kansas and earn income from that Kansas activity, you have a Kansas filing obligation — there is no dollar threshold that excuses filing. Plan to file a Kansas individual income tax return and allocate your Kansas-source income.

Teams, agents, and payors

Compensation tied to Kansas appearances is Kansas-source income to the performer. Be aware of the filing obligation this creates for non-resident talent and of any related Kansas withholding responsibilities.

Using nonresident allocation

The Kansas Individual Income Tax Booklet's nonresident allocation section is the tool for determining how much of a nonresident's income Kansas taxes. Consult the current-year booklet, since forms and instructions change year to year (this letter enclosed the 1997 edition).

Common questions

Q: Does a non-resident athlete with only a little Kansas income still have to file?
A: Yes. The Department said the filing obligation applies "regardless of the amount of Kansas source income received."

Q: What return does the non-resident file?
A: A Kansas individual income tax return, using the nonresident allocation rules to report the Kansas-source share of income.

Q: Is this a binding ruling?
A: No. It is an informational letter, not a private letter ruling under K.A.R. 92-19-59.

Citations and references

• The letter is informational and does not cite a specific statute for its holding. It states that non-resident professional athletes and entertainers with Kansas-source income must file a Kansas individual income tax return regardless of amount, and directs the reader to the nonresident allocation section of the Kansas Individual Income Tax Booklet (1997 edition enclosed).

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: O-1998-26

Original ruling text

Opinion Letter

Body:

Office of Policy & Research

November 5, 1998

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Dear Ms. TTTTTTT:

We wish to acknowledge receipts of your letter dated January 12, 1998, regarding the application of the Kansas income tax. I apologize for the delay in responding to your inquiry. Many states have been researching this area.

This is an informational letter only and not a private letter ruling pursuant to K.A.R. 92-19-59.

Please be advised that non-resident professional athletes and entertainers who receive income from Kansas sources, would be obligated to file a Kansas individual income tax return, regardless of the amount of Kansas source income received.

The Kansas Individual Income Tax Booklet contains a section on nonresident allocation. For your convenience, I have enclosed this publication for tax year 1997.

If I may be of further assistance, please contact me at your earliest convenience at (785) 296-7776.

Sincerely yours,

Thomas P. Browne, Jr.
Tax Specialist

TPB

Date Composed: 12/23/1998 Date Modified: 10/10/2001

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