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. The amendment specifies that for tax years commencing on and after January 1, 2025, the Kansas itemized deduction will include 100% of losses from wagering transactions, as allowable under section 165(d) of the federal internal revenue code. This change is part of a broader update to the Kansas itemized deduction structure, which also maintains existing deductions for charitable contributions, medical expenses, qualified residence interest, and property taxes.

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 2025. The new legal language reflects a shift in the eligibility criteria for itemized deductions, allowing individuals to opt for the Kansas itemized deduction regardless of whether they itemize deductions on their federal tax returns starting from tax year 2021. The bill aims to provide more flexibility and potential tax relief for Kansas residents engaging in wagering activities.

Statutes affected:
As Introduced: 79-32
As introduced: 79-32