Form K-41 - Fiduciary Income Tax Instructions

income paid to shareholders through a mutual fund is also exempt

KPERS Lump Sum Distribution. Employees who terminated

from Kansas tax. If the mutual fund invests in both exempt and

KPERS employment after July 1, 1984, and elect to receive

non-exempt federal obligations, the modification allowed will be

their contributions in a lump sum distribution will report

that portion of the distribution received from the mutual fund

their taxable contributions on their federal return. Subtract

attributable to direct obligations of the U.S. government, as

the amount of the withdrawn accumulated contributions or

determined by the mutual fund. These obligations include: U.S.

partial lump-sum payment(s) to the extent either is included

Savings Bonds, U.S. Treasury Bills, Federal Land Bank, etc.

in federal adjusted gross income. See NOTICE 05-04 for

Enclose a schedule indicating the name of each U.S. Government

additional information.

obligation claimed.

Sale of Kansas Turnpike Bonds. Enter the gain from the

sale of Kansas Turnpike Bonds if the gain was included in

LINE 25b—STATE INCOME TAX REFUNDS. Enter any state or

the federal taxable income.

local income tax refunds which are included in line 1 of Form K-41.

Partnership, S Corporation or Fiduciary Adjustments. If

LINE 25c—RETIREMENT BENEFITS. Enter any federal civil

income was received from a partnership, S corporation,

service retirement annuity paid from the Federal Civil Service

joint venture, syndicate, trust or estate, enter the

Retirement or Disability Fund and any other amounts received as

proportionate share of any required subtraction

retirement benefits which were earned for being employed by the

adjustments. The partnership, S corporation, or beneficiary

federal government or for service in the armed forces of the United

will provide you with the necessary information to determine

States which is included in the federal taxable income.

this amount.

Enter any Kansas pension benefits received which are

Jobs Tax Credit. Enter amount of the federal targeted jobs

specifically exempt from Kansas income tax if it was included in

tax credit disallowance claimed on the Federal Income Tax

the federal taxable income. Exempt Kansas pensions include:

return.

Kansas Public Employees’ Retirement Annuities, Kansas

Kansas Venture Capital, Inc. Dividends. Enter amount of

Teachers’ Retirement Annuities, Kansas Police and Firemen’s

dividend income received from Kansas Venture Capital, Inc.

Retirement System pensions, Kansas Highway Patrol pensions,

S Corporation Privilege Adjustment. If you are a

Justices and Judges Retirement System, Board of Public Utilities,

shareholder in a bank, savings and loan, or other financial

Washburn University pensions, and certain pensions received

institution that is organized as an S corporation, enter the

from first class cities, not covered by the Kansas Public Employees’

portion of any income received that was not distributed as a

Retirement System.

dividend. This income has already been taxed on the

Faculty and others employed by the State Board of Regents, or

privilege tax return filed by the S corporation financial

by educational institutions under its management, are entitled to

institution.

Kansas tax exemption on income derived from retirement annuity

contracts purchased for them by the State Board of Regents with

Electrical Generation Revenue Bonds. Enter the amount

either their direct contributions or through salary reduction plans.

included in federal taxable income.

Benefits received from all railroad retirement plans

Learning Quest Education Savings Program. Enter

administered by the U.S. Railroad Retirement Board are exempt

contributions deposited in the Learning Quest Education

from state taxation by federal law. Enter any railroad retirement

Savings Program, or a qualified 529 tuition program

benefits received from the U.S. Railroad Retirement Board which

established by another state, up to a maximum of $3,000

are included in federal taxable income. This exemption from

per student (beneficiary).

Kansas taxes includes tier I, tier II, dual vested benefits and

Armed Forces Recruitment, Sign-Up or Retention Bonus.

supplemental annuities.

Members of the armed forces of the United States (including

Kansas army and air national guard): enter amounts

LINE 25d—OTHER SUBTRACTIONS FROM FEDERAL TAXABLE

received as a recruitment, sign up or retention bonus you

INCOME. Enter on line 25d the total of these other subtractions

received as an incentive to join, enlist or remain in the armed

from federal taxable income. Note: You may not subtract the

forces of the United States, to the extent included in federal

amount of income reported to another state.

adjusted gross income. Also include amounts you received

Social Security Benefits (for taxpayers with federal

for repayment of educational or student loans incurred by

adjusted gross income of $75,000 or less). Enter the

you or for which you are obligated, and received as a result

amount received as benefits under the Social Security Act

of your service in the armed forces of the United States, to

(including SSI) in 2013, to the extent it is included in federal

the extent included in federal adjusted gross income.

adjusted gross income.

KPERS Lump Sum Roll Over. Enter the amounts withdrawn

LINE 25e—TOTAL SUBTRACTIONS. Add lines 25a through 25d

from a qualified retirement account and include any earnings

and enter the total on line 25e.

thereon to the extent that the amounts withdrawn were

LINE 26—NET MODIFICATION TO FEDERAL TAXABLE INCOME.

originally received as a KPERS lump sum payment at

Subtract line 25e from line 24e. Enter the total on line 26 and on

retirement that you rolled over into a qualified retirement

line 2, page 1, Form K-41. If there are beneficiaries, refer to Part II.

account and the amount entered is included in federal

adjusted gross income. Do not make an entry if the amount

PART II

withdrawn consists of income that was originally received

from retirement annuity contracts purchased for faculty and

Part II is used to determine the allocation of the shares of the

others employed by the State Board of Regents or by

Kansas fiduciary modification. The Kansas fiduciary modification

educational institutions under its management with either

is divided among the beneficiaries and the fiduciary in proportion

their direct contributions or through salary reduction plans

to their share of the federal distributable net income plus the

or, a pension received from any Kansas first class city that

amount contributed or required to be contributed from current

is not covered by the Kansas Public Employee’s Retirement

income to charitable beneficiaries.

System.

If there is no federal distributable net income, each beneficiary’s

Page 9

Form K-41 - Fiduciary Income Tax Instructions - 2013 Page 5

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