Kansas Axed Social Security Taxes In 2024. Here’s What You Need To Know

Every state has unique laws regarding the taxation of social security benefits. Some states don’t tax social security at all and some states tax it partially. As of tax year 2024, Kansas is now included in the list of states that do not tax social security at all! 

On June 20, 2024, Kansas Governor Laura Kelly signed new tax legislation that eliminates the $75,000 income limit to qualify for a subtraction modification on the Kansas income tax return for social security income. 

Originally, the Kansas tax return would start with the federal adjusted gross income (AGI) amount on line 11 of the federal form 1040. Taxpayers (regardless of filing status) who were receiving social security benefits with an AGI of $75,000 or less could then subtract the taxable social security income on line 6b of the federal form 1040 from their Kansas AGI, which prevented them from paying tax on that income. However, any taxpayers who had an AGI of more than $75,000 were required to pay Kansas income tax on their taxable social security benefits. 

The new law now eliminates Kansas income tax on social security for all taxpayers, regardless of AGI. The new tax law goes into effect for all tax years beginning after December 31, 2023, meaning that this law retroactively took effect on January 1, 2024. 

Since every state taxes social security differently, no forms to request state withholdings on social security exist. Until this year, taxpayers’ only options to take care of the tax generated from their Kansas taxable social security were to either increase withholdings from other sources of income, or pay quarterly Kansas estimated tax payments. If you have been making quarterly Kansas estimated tax payments to help cover the tax generated from your taxable social security tax benefits, please reach out to our tax professionals to discuss whether this is still necessary for you.