This bill amends K.S.A. 2024 Supp. 79-32,120 to allow Kansas residents to claim an itemized deduction for losses from wagering transactions, effective for tax years commencing on and after January 1, 2025. The amendment specifies that individuals can elect to deduct the Kansas itemized deduction in lieu of the Kansas standard deduction for tax year 2021 and all subsequent years, regardless of whether their federal taxable income is determined by itemizing deductions. Additionally, the bill outlines the specific deductions that will be included in the Kansas itemized deduction, which now incorporates 100% of losses from wagering transactions allowable under section 165(d) of the federal internal revenue code.

The bill also 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, including various percentages of charitable contributions, medical expenses, qualified residence interest, and property taxes. The new legal language establishes a more straightforward approach to itemized deductions moving forward, ensuring that Kansas taxpayers can benefit from a broader range of deductions, including those related to gambling losses. The act will take effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32