J R Sandoval EA Posted March 25, 2009 Report Share Posted March 25, 2009 I have a California client who moved to Kansas in Aug 2008. All his income is from California as he did not work in Kansas at all in 2008. He has w2 income and 1099R early distributions all from California; I am doing a part year California and Part year Kansas resident returns; is there anything I should pay particular attention in the Kansas return? Client acquired a house in Kansas in Nov 2008. Thanks in advance for your help. Quote Link to comment Share on other sites More sharing options...
Bart Posted March 25, 2009 Report Share Posted March 25, 2009 I have a California client who moved to Kansas in Aug 2008. All his income is from California as he did not work in Kansas at all in 2008. He has w2 income and 1099R early distributions all from California; I am doing a part year California and Part year Kansas resident returns; is there anything I should pay particular attention in the Kansas return? Client acquired a house in Kansas in Nov 2008. Thanks in advance for your help. Line 9 on the KS K-40 and KS schedule S. Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 25, 2009 Report Share Posted March 25, 2009 Hi, J R. You will do a Kansas Schedule S, page 2, to delineate the non-resident income. Kansas uses an apportionment (is that a word) method to calculate the percentage of State tax owed to Kansas. Let me know if you have other questions. Quote Link to comment Share on other sites More sharing options...
J R Sandoval EA Posted March 25, 2009 Author Report Share Posted March 25, 2009 Hi, J R. You will do a Kansas Schedule S, page 2, to delineate the non-resident income. Kansas uses an apportionment (is that a word) method to calculate the percentage of State tax owed to Kansas. Let me know if you have other questions. Do I have to include Kansas use tax or is this optional? K40, line 18. Thanks again. Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 25, 2009 Report Share Posted March 25, 2009 Hello again. You only need to complete line 18 if your client owes compensating use tax (purchased items from outside the state on which he/she did not pay sales tax). Not sure how old your client is . . . KS also gives an adjustment to FAGI for Qualified LTC insurance premiums. SS is exempt up to a certain income level (software calculates automatically if you are using ATX . . . modification to AGI shown on schedule S, page 1) Quote Link to comment Share on other sites More sharing options...
J R Sandoval EA Posted March 25, 2009 Author Report Share Posted March 25, 2009 Hello again. You only need to complete line 18 if your client owes compensating use tax (purchased items from outside the state on which he/she did not pay sales tax). Not sure how old your client is . . . KS also gives an adjustment to FAGI for Qualified LTC insurance premiums. SS is exempt up to a certain income level (software calculates automatically if you are using ATX . . . modification to AGI shown on schedule S, page 1) Client is in his early 40's; What about his 1099R; he received this money while living in Kansas and has Kansas withholdings, but it is money from his California job; California will charge him the early withdrawal penalty; is there anything I need to do in the Kansas return regarding this issue? Thanks a million for all your help. Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 25, 2009 Report Share Posted March 25, 2009 What type of retirement plan is the 1099 from? Quote Link to comment Share on other sites More sharing options...
J R Sandoval EA Posted March 25, 2009 Author Report Share Posted March 25, 2009 What type of retirement plan is the 1099 from? 401K (early distribution) Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 25, 2009 Report Share Posted March 25, 2009 Okay . . . maybe I'm having a brain collapse. I would say that the 401(k) income is Kansas income (I assume it was from some sort of portable mutual fund based stock account). I would not consider it California source income. I usually think of 401(k)/IRA income as taxable in the State where the recipient lives when the withdrawal is taken. Somebody please straighten me out, here. Quote Link to comment Share on other sites More sharing options...
J R Sandoval EA Posted March 25, 2009 Author Report Share Posted March 25, 2009 Okay . . . maybe I'm having a brain collapse. I would say that the 401(k) income is Kansas income (I assume it was from some sort of portable mutual fund based stock account). I would not consider it California source income. I usually think of 401(k)/IRA income as taxable in the State where the recipient lives when the withdrawal is taken. Somebody please straighten me out, here. I think you are right; retirement income if taxable is taxed in the state of residence when the funds are withdrawn; does Kansas charge an early withdrawal penalty? I cannot find any form or line for this? Thanks again Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 25, 2009 Report Share Posted March 25, 2009 No Kansas early withdrawal penalty. Quote Link to comment Share on other sites More sharing options...
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