The bill amends K.S.A. 2024 Supp. 79-32,117 to introduce a subtraction modification for military compensation when calculating Kansas adjusted gross income, allowing individuals to deduct these amounts from their federal adjusted gross income. This change aims to reduce the overall state tax liability for military personnel. Additionally, the bill repeals the existing section of K.S.A. 79-32,117, indicating a comprehensive update to the law governing Kansas adjusted gross income and ensuring alignment with federal tax regulations while providing specific benefits to military members.

Further modifications in the bill include the exclusion of certain income reported on Schedule E of federal tax returns, a cumulative contribution limit for family postsecondary education savings accounts and ABLE accounts, and the option for taxpayers to apply contributions to the prior taxable year under certain conditions. Other notable provisions address the treatment of income for armed forces members, exclusions for social security benefits for lower-income taxpayers, and deductions for unreimbursed travel and medical expenses related to organ donation. The bill also covers various other income types, including net gains from livestock sales and retirement benefits, and introduces provisions for adoption savings accounts and compensation for armed forces service members. The bill will take effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32