All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 2
Registered: ‎02-17-2017
Accepted Solution

1099 misc income not taxable in KS?

I have income from a 1099-MISC. I have entered the amount in both box 7 (nonemployee income) and box 18 (state income - even though it's not listed in box 18 on the 1099) in my Premium software. But, on my Kansas return on Schedule S, it subtracts my business income as a modification only subject to federal taxes. I'm not sure why it's taking my business income OFF of my federal AGI? Even the KS tax help line tells me that this income isn't taxable at the state level, but it makes me nervous. ?? Is that tax somehow already figured in with my federal? It changes from me owing about $100 to getting back nearly $700 and would also mean that I'd need to amend 2015... 

Tax Pro
Posts: 5,431
Registered: ‎02-23-2016

Re: 1099 misc income not taxable in KS?

[ Edited ]

Hi tkc9810,

 

Welcome to the H&R Block community.

 

The information you've received about Kansas is correct.  Only wage income is taxable in Kansas.  Your state passed a law in 2012 (the law went into effect in 2013) that eliminated the state income tax on the income of pass-through entities which include sole proprietorship's, s-corporations, partnerships, and limited liability companies.  This exemption from tax also includes independent contractors who are issued a Form 1099-MISC.

 

However, your net income on Schedule C is taxable on the federal return and should not be removed at the federal level.  Your net income is the figure shown on the 1099-MISC less any expenses you incurred for this job that you were not reimbursed for.

 

This is one of many sources of information on the Kansas tax exemption for business income.

 

Hopefully this helps you out.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Pioneer
Posts: 2
Registered: ‎02-17-2017

Re: 1099 misc income not taxable in KS?

Thank you so much for the quick response! Looks like I need to amend 2015 as well!

Thanks again.

 

Tax Pro
Posts: 5,431
Registered: ‎02-23-2016

Re: 1099 misc income not taxable in KS?

You're welcome.

 

You're also correct.  If you included contractor income on your 2015 state return then you should amend that return.

 

Louis