This bill amends K.S.A. 2024 Supp. 79-32,120 to allow individuals to claim an itemized deduction for certain wagering losses starting from tax year 2025. Specifically, it introduces a new provision that permits individuals to deduct 100% of losses from wagering transactions, as allowable under section 165(d) of the federal internal revenue code. The bill also modifies the eligibility criteria for claiming the Kansas itemized deduction, allowing individuals to elect this deduction regardless of whether their federal taxable income is determined by itemizing deductions.

Additionally, the bill repeals the existing section of K.S.A. 2024 Supp. 79-32,120, which previously outlined the itemized deductions for tax years prior to 2021. The new language simplifies the process for taxpayers by consolidating the rules for itemized deductions and ensuring that individuals can benefit from the new wagering loss deduction without the previous restrictions. The act will take effect upon its publication in the statute book.

Statutes affected:
As introduced: 79-32