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Why is the software charging a fiduciary income tax on a Kansas Estate return when there is no federal tax due?

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Level 1
 
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7 Replies 7
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Level 11

Why not?

Some deductions allowed on the federal return are probably not allowed by Kansas.  For example, state income taxes.  

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Level 1

Thanks for your response. 

My research indicates there will be no state tax due if there is no federal tax due for the estate. This is not a business return with future income but a simple estate. Paying tax on this return will cause double taxation to the tax payer. I can't find anyway to remove the Kansas tax in the software.

 

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Level 15
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Follow the money through the KS return (print it out if need be)...what is being taxed?  Is it correct?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Thank you for responding.

No the amount they are taxing is not correct. They are taxing 1 of the beneficiaries and not the other on 1/2 of the income received.Both  Beneficiaries  will have to pay tax on the income received on their 2020 taxes. The estate is not required to pay tax on the K41 return.

 

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Level 15

Is one a resident of Kansas and one a nonresident?


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Level 11

Another reason could be the estate's taxable income is from capital gains -- zero tax rate on lower amounts for federal, no tax break for nearly-bankrupt Kansas.  

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Level 15

and/or qualified dividends.


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