See whether you qualify for the Kansas Earned Income Tax Credit and find out how it works. An Earned Income Tax Credit (EITC) is a refundable tax credit that might reduce or eliminate your federal tax liability for those who qualify. That credit is available to anybody, regardless of marital status or number of dependents. The most important condition is that you have some means of financial support. You may owe no federal tax after using this credit. People who work and earn a low or modest income are eligible for the Earned Income Tax Credit (EITC).

In Kansas, What Does Eic Stand For?

A tax credit reduces your tax liability to the exact amount that the credit is claimed. Kansas individuals with low or moderate incomes may qualify for the Kansas tax credit for earnings. The Kansas Tax Credit is available to everyone who claimed the nationwide Child Tax Credit. A state-level EITC available in Kansas corresponds to 17% of the federal credit. The EITC in Kansas has been around since 1998.3 Throughout 2007 and then again in 2010, but with the second expansion being just temporary. Both the federal EITC and the Kansas credit are refundable. This implies that the state will issue you a check for the difference between your credit and the federal taxes you owe.

Who Is Eligible To Receive A Tax Refund From Kansas Based On Their Earned Income?

The Kansas Earned Income Tax Credit (EITC) is available to all taxpayers eligible for the federal EITC. The EITC is available to taxpayers as young as 19, although this is not the case for everyone. In the case of a former foster child or a homeless kid, however, the minimum age is 18. Sure, students need to be at least 24 years old. To file a joint tax return with your spouse, you and your husband or wife must be of legal filing age. The American Recovery and Reinvestment Act (ARRA) of 2021 has regulations for filing separately as a married couple to get the EITC. People with disabilities, members of the armed forces, and clergy are all eligible for unique, more relaxed regulations.

Income Requirements And Credit Amounts For The Federal Earned Income Tax Credit

This federal Income Tax Credit has income restrictions based on your itemized deductions (single, member of the household, or some other) and, indeed, the number of your dependent. Augmented gross income rather than total income is used to determine eligibility for some benefits. Investment income is subject to a $10,000 cap within your total adjusted gross income. For such a married couple filing a joint refund check with two eligible children, the Kansas deduction is about $1,017 ($5,980 x 0.17 = $1,016.6, rounded to $1,017). For Kansas residents, this tax credit reduces the state income tax owed. Besides the $5,980 you'd get from the IRS for both the federal credit, you'd also get the separate $5,980 tax credit for paying federal income taxes.

Explain The Procedure For Claiming The Kansas Earned Income Tax Credit

When you submit your Oregon state revenue tax return, you may also claim the Kansas EITC. A discussion of the EITC begins on page 8 of something like the specifications for Kansas Form K-40, your Tax Return. The Earned Income Tax Credit for your state may be calculated with the help of the accompanying worksheet. If you're submitting your Kansas account first and haven't yet received word on how much you'll get in federal EITC, then the Kansas Revenue Division advises you to file without collecting the credit. The appropriate taxes, if any, should be paid at that time.

Conclusion

To compensate for the state's sales tax increase, Kansas boosted its state EITC from 17% to 18% for both the tax years 2010-2012. There have been talks of state EITC cutbacks during the budget preparation process between Gov. Brownback and congressional leaders over the last several administrations. Still, the EITC has remained unscathed in the final accords. You may then submit an updated Kansas tax return to claim the statewide credit after you have filed your income tax return and determined the extent of the congressional credit.