Veto override to leave many Kansans owing more tax than anticipated

Michael Ronnebaum
June 30, 2017 - 7:19 am
Categories: 

Big changes are coming to Kansas taxpayers, especially those who are self employed. 

After the Kansas Legislature reversed Gov. Sam Brownback's veto on Senate Bill 30, many Kansans are unaware of the implications to their 2017 statements.

The changes will have a great effect on taxpayers who use small business benefits like the pass-through exemption, also known as the LLC Loophole, said Andy Phillips, director of the tax institute at H&R Block.

"Unfortunately with this change that exemption no longer applies, even if, say, you have a partnership or an S corporation," Phillips said. "Those folks who had not been paying any income tax in the state of Kansas, starting with 2017, will now have a tax liability associated with that business income."

People who have small businesses who would not otherwise owe Kansas tax should consider estimated payments, Phillips said.

"Because even though that failure to make estimated payments penalty is gone for 2017, you don't want to get into a situation where you have a really large liability at year's end, because you weren't proactive and didn't make payments along the way," Phillips said.

The taxable income rate in 2017 for someone earning between $30,000 and $60,000 is 4.9 percent. That rate will be raised to 5.2 percent for 2018. 

Comments ()
By signing up, I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.