Local Intangibles Tax in Kansas for 2018 Using Form 200 for Personal Returns

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1 for 2018 Using Form 200 for Personal Returns Do not confuse intangible tax with state income tax The intangibles tax is a local tax levied on gross household earnings received from intangible property including Interest from savings accounts Dividends from stocks (NOT CAPITAL GAINS) Interest and coupons on bonds Interest from accounts receivable Interest from seller-financed mortgages KANSAS STTC TRAINING - TY2017 1

2 The following are exempt intangibles income: Interest from individual and qualified retirement plans Bonds issued by the federal government Bonds issued by the State of Kansas and any of its municipal or taxing subdivisions as well as some entities such as hospitals KANSAS STTC TRAINING - TY2017 2

3 All Kansas residents receiving intangibles income during 2017 must file a Form 200 for 2018 UNLESS you live in an area with no intangibles tax oparts of 54 of the 105 counties in the state as well as any city/township can impose and collect intangible taxes. KANSAS STTC TRAINING - TY2017 3

4 or your household calculated tax is less than $5. othe amount of intangibles income that requires the taxpayer to file Form 200 depends upon the amount of total intangibles income and the tax rate for the taxpayer s location. otax rates are as low as 0.75% and as high as 3.00%. Local governments set the rate for their locality. KANSAS STTC TRAINING - TY2017 4

5 Not Required to File examples: Local Tax Intangible Intangibles Rate Income Tax 3% $166 $ % $222 $ % $666 $4.995 KANSAS STTC TRAINING - TY2017 5

6 Check the Instructions for 2018 Local Intangibles Tax Return to find the tax rates for the counties, and any city/township that impose the tax. KANSAS STTC TRAINING - TY2017 6

7 The completed Form 200 must be filed by April 15, 2018 with the local County Clerk s office. Not with your income taxes. The County Treasurer will bill you at a later date, usually in November when property tax bills for 2018 are mailed. The tax must then be paid to the County Treasurer -- half in December 2018 and half in May KANSAS STTC TRAINING - TY2017 7

8 Special Senior Citizen or Disability Exemption If the taxpayer is 60 or older on or before January 1, 2018, or was disabled or blind during all of 2017, AND the taxpayer s household income is $20,000 or less, THEN, the taxpayer has a $5,000 exemption subtracted from their intangibles earnings if total household income is less than $15,000. KANSAS STTC TRAINING - TY2017 8

9 Special Senior Citizen or Disability Exemption IF total household income is above $15,000, the exemption is reduced dollar for dollar up to $20,000 and then the exemption is 0. Example: total household income = $18,500. Exemption =($20,000 - $18,500) = $1,500 Since this is for the total household, only one spouse can claim the special intangibles income exemption. KANSAS STTC TRAINING - TY2017 9

10 In TaxSlayer, go to State Section, Resident edit Local Intangibles Tax in Kansas Form 200 found here KANSAS STTC TRAINING - TY

11 Choose to Open Form 200 KANSAS STTC TRAINING - TY

12 TaxSlayer does not show the actual form during entry of info, but it does, however, pull in personal info for the taxpayer. KANSAS STTC TRAINING - TY

13 --Select -- May need an entry here. Not applicable for individuals --Select -- CAUTION: Enter any additional income received above the FAGI amount from Ln 37, Form See the Work Around for details. KANSAS STTC TRAINING - TY

14 Work Around Details for Additional Income Above FAGI: Other income above FAGI must be gathered by the volunteer counselor, summed up, and entered on the Local Intangibles Tax Return (Form 200) screen. Income sources details below are directly from the instructions for Form 200: KANSAS STTC TRAINING - TY

15 TaxSlayer DOES NOT pull any of the PART 1 -- Intangible Earnings from the federal or state information. Local Intangibles Tax in Kansas KANSAS STTC TRAINING - TY

16 TaxSlayer DOES NOT pull any of these intangible earnings from the federal or state information. Local Intangibles Tax in Kansas LINE 4, Form 200 LINE 5, Form 200 LINE 6, Form 200 LINE 7, Form 200 LINE 8, Form 200 LINE 9, Form 200 LINE 10, Form 200 Enter all amounts applicable for the taxpayer s household. KANSAS STTC TRAINING - TY

17 TaxSlayer DOES sum all of the PART 1 -- Intangible Earnings entered and puts the total on Lines 11 and 15. Local Intangibles Tax in Kansas TaxSlayer WILL, if applicable calculate the SPECIAL SENIOR CITIZEN OR DISABILITY EXEMPTION in PART II. KANSAS STTC TRAINING - TY

18 Finishing Form 200 othe form will be printed as the last part of the taxpayer s total printout. oseparate the completed form from the printout and review it with the taxpayer. The taxpayer(s) needs to sign the form. oprint a second copy for the taxpayer s records. ogive the Work Around Sheet to the taxpayer. ofollow your site s procedures for filing the form with the County Clerk. KANSAS STTC TRAINING - TY

19 Now it s YOUR turn Questions? Comments? Concerns? KANSAS STTC TRAINING - TY