Income Tax Instructions For Armed Forces Personnel (Form Ia-36) (Page 2 of 2) in pdf

Income Tax Instructions For Armed Forces Personnel (Form Ia-36) Page 2

RESIDENTS

If a resident received income from another state and was required to pay income tax to that other state, they may

be entitled to claim a tax credit against their Kansas income tax liability to avoid double taxation of that income.

The credit will be the actual tax liability in the other state; or the amount determined by limitation formulas set forth

in the Kansas Individual Income Tax Booklet. A copy of the return filed with the other state and supporting

schedules must be enclosed with the Kansas return to support the credit claimed.

NONRESIDENTS

Nonresident individuals stationed in Kansas due to military orders are not subject to Kansas income tax on their

military pay.

However, nonresident military personnel or their spouses (when filing a married filing joint return) must file a

Kansas income tax return when they have income from Kansas sources.

Beginning with Tax Year 2003,

nonresident military compensation is a subtraction modification on the front of Schedule S, line A10, Form K-40 for

those required to file a Kansas return. Due to the subtraction of the nonresident military compensation, only the

Kansas source income is used to determine the Kansas income tax. Nonresident military personnel must continue

to complete Part B, Kansas Allocation, on the back of Schedule S, Form K-40 to determine the percentage of their

income from Kansas sources.

If the individual or spouse is a resident and the other is a nonresident and they have filed a joint federal return,

their Kansas taxable income shall be reported and taxed on the basis of a joint nonresident Kansas return. They

must use Part B, Nonresident Allocation, on the back Schedule S, Form K-40 to determine the percentage of their

income from Kansas sources and the proportion of their tax owed to Kansas.

RETIREMENT BENEFITS

Amounts received as retirement benefits in whatever form which were earned for being employed by the federal

government or for service in the armed forces of the United States are a subtraction modification from federal

adjusted gross income. Use Part “A’ on the front of Schedule S, Form K-40 to subtract (exempt) military retirement

benefits from Kansas Income Tax.

Income Tax Instructions For Armed Forces Personnel (Form Ia-36) Page 2