Effective for tax year 2017 (retroactive to 1-1-17), the Kansas tax exemption for non-wage business income, which has been in effect since tax year 2013, has been repealed. Taxpayers can also begin claiming non-wage business losses in conformity with federal treatment. Per legislation passed June 6, 2017, it is our understanding that no taxpayer shall be assessed penalties and interest from the underpayment of taxes due to this change that becomes law on July 1, 2017, so long as such underpayment is rectified on or before April 17, 2018. We will keep you updated for any guidance issued by the Kansas Department of Revenue that would affect this change. For more information, we are providing a link to the tax law changes as described on the Kansas Legislative website.
Please contact us if you have any concerns or would like further advice on estimating your Kansas tax liability for 2017 or would like to discuss options for paying Kansas estimated tax before the April 17, 2018, deadline.