Due to recent Kansas tax law changes, taxpayers that have paid Kansas City, MO earnings tax or earning taxes to districts outside of Kansas, may be eligible for a refund.
A possible refund? Did someone say refund? That’s great news – what are the details?
KSA 79-32,111 is a statute that allows a credit for taxes paid to other states, now including Kansas City, MO earnings taxes. The interpretation of this statute allows for a three-year statute of limitations, meaning that refund claims from 2011-2013 may be eligible. A broader interpretation on this statute from the Kansas Department of Revenue includes other cities and counties, in addition to Kansas City, MO, imposing an income tax. And, to take it a step farther, school districts are included as part of the “political subdivision” definition. That means earnings taxes paid to school districts in other states may qualify.
We’ve taken a proactive look at our clients’ eligibility and are pleased to report that those who are eligible have been notified of their unexpected Kansas refund. For more information, please call the office of Ronald Castor LC at 913.469.9113.