The bill amends K.S.A. 2024 Supp. 79-32,117 to introduce a subtraction modification for certain qualified tips, exempting them from state income tax. This adjustment allows individuals to subtract these qualified tips from their federal adjusted gross income, thereby impacting the calculation of Kansas adjusted gross income. The bill also includes various modifications to existing law, detailing specific additions and subtractions from federal adjusted gross income, including provisions related to interest income, taxes, and deductions for various expenses. Additionally, it repeals the existing section of K.S.A. 79-32,117, indicating a comprehensive update to the income tax regulations.

Furthermore, the bill introduces several modifications to the Kansas tax code, particularly for taxable years beginning after December 31, 2012. Key provisions include the exclusion of certain income or loss reported on Schedule E, a cumulative contribution limit for family postsecondary education savings accounts and ABLE accounts, and the ability for taxpayers to apply contributions made in the current year to the prior taxable year. The bill also addresses income exclusions for armed forces members, social security benefits for lower-income taxpayers, and retirement benefits from Washburn University, while allowing for the carryback of federal net operating losses and introducing the subtraction modification for qualified tips. The bill will take effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32