The bill amends K.S.A. 2024 Supp. 79-32,117 to introduce a subtraction modification for compensation received by individuals serving in the armed forces when calculating their Kansas adjusted gross income. This allows these individuals to subtract their military compensation from their federal adjusted gross income, effectively lowering their taxable income in Kansas. The bill also repeals the existing section of K.S.A. 79-32,117, marking a significant shift in the treatment of military compensation for state income tax purposes.

In addition to the military compensation modification, the bill includes various other updates to the Kansas tax code, such as specific provisions for interest income, federal tax refunds, and deductions related to business expenses and charitable contributions. It also introduces deductions for contributions to family postsecondary education savings accounts and ABLE accounts, with limits of $3,000 for individuals and $6,000 for married couples filing jointly. Other notable changes include the exclusion of social security benefits for taxpayers with adjusted gross incomes of $75,000 or less, and the allowance of unreimbursed travel and medical expenses for organ donation. The bill will take effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32