Our Taxing Times

One Cutback- Two Benefits

In a time of state budget shortfalls for Kansas, it comes as no surprise that Kansas Department of Revenue has not only cut back on workshops but they have also decided to cut the free tax forms they send out to preparers.

Taxpayers who have been preparing their own returns will still receive a modified tax book in December. As I understand it, it will be the forms and the basic instructions. The full instructions will be online or can be requested. What KDOR will not be sending out are the blank forms that grocery stores, banks and the Post Office gave out. And the free forms it sends to tax preparers.

Tax professionals have been able to place an form order with KDOR for the blank forms and addressed envelopes. For many of us, it was a standing order that was sent out in the fall. I didn't order forms but I did take advantage of the free envelopes. Not any more. If I want to buy forms or envelopes, KDOR will be glad to sell them to me for a reasonable cost. 

Besides saving the state some money, making it harder to get forms and envelopes may be the extra kick some preparers need to start e-filing. Last year, Kansas mandated e-filing for preparers who filed 50 or more returns a year. There were 215 mandated preparers who didn't e-file at all. They were responsible for over 25,000 returns filed. E-filing is easier than mailing a return but for many preparers it is a mental hurdle to get over. Hopefully, this will convince the holdouts to give e-filing a try.

If they do, it will save KDOR the money and maybe they will bring back the free workshops. I love free CPEs

Kansas Tax Refunds Delay - Again.

Looks like Kansas has put a hold on tax refunds again. Tax revenues are down due to  the economy. Current estimate is about a month delay.

Homestead Changes

Kansas will now allow the Kansas Homestead returns to be e-filed. Yeah!!!! While KDOR and preparers had wanted to e-file these returns for years, we couldn't since a copy of the taxpayer's property tax statement had to be attached. Last year, this was changed and opened up e-filing the Homestead.

The Homestead is a rebate on property taxes a taxpayer has paid directly because they own their home or indirectly through rent. The taxpayer has to reside in Kansas, be over 55, or disabled, or have a child under 18. All requirements have to be met for the full year. For 2008 returns, household income must be under $29,700. This includes half of the social security received by the claimant. Household income decides the percentage of the property tax refunded. The max rebate is $700. Check with your preparer to see if you qualify.

A new program this year is the Safe Senior program. It targets low income homeowner who are 65 or older and have total household income below $16,800 (this program requires all Social Security to be counted.) The rebate is set at 45% and there is no cap on the maximum rebate. The Safe Senior (form K-40PT) can be efiled. Again, please check with your tax professional so they can check which program, Homestead or Safe Senior, will be the best for you. 

Also, expanded from last year, if Social Security is taxable on a federal return, it can be excluded from Kansas income if the Federal Adjusted Gross Income is $75,000 or less.