Pratt Rehabilitation & Residence Center

Many Older Americans Qualify for Refunds on State and Local Taxes

Reproduced with permission from the Publications section of the Kansas Department on Aging web site, http://www.agingkansas.org/kdoa.

Many older Kansans may not know that they qualify for partial refunds of residential property taxes and food sales taxes. Both these programs are administered by the Kansas Department of Revenue.

As a Kansas resident for the entire year, you are eligible if you:

were at least 55 years old on January 1. Homestead applicants must be at least 55 for the entire tax year being claimed. Food sales tax applicants are eligible to apply if they turn 55 anytime during the tax year being claimed; OR
were totally and permanently disabled or blind the entire year; OR
have a dependent child who was born before January 1, was under the age of 18, and lived with you the entire year, AND
meet the income guidelines.

What are the income guidelines?

Homestead -Your household income cannot be more than $25,000

Food Sales Tax-Your qualified income cannot be more than $25,000

How do you claim the homestead refund?

Complete the "Kansas Homestead Claim" form K-40H, and file it with the Kansas Department of Revenue anytime between January 1 and April 15 (this deadline is earlier than it used to be when the filing deadline was October 15). The homestead booklet is available at the Topeka office of the Kansas Department of Revenue, as well as at most county courthouses, driver`s license exam stations, and other places where income tax forms are available.
If you receive a homestead refund and you are a homeowner, you will automatically get an "advancement letter" from the Kansas Department of Revenue in the fall. You have the option of taking the letter to your county clerk`s office by December 20 and using it to help pay your property taxes for the coming year. If you use this option, you will still need to file a homestead and food sales tax claim after January 1.

How do you claim the food sales tax refund?

Complete the "Kansas Individual Income Tax and/or Food Sales Tax Refund" form K-40, and file it with the Kansas Department of Revenue.

Specific federal tax benefits for older Americans

While generally the federal income tax laws apply equally to all taxpayers regardless of age, certain provisions give special treatment to older persons. All taxpayers 65 years of age or older benefit from a higher gross income threshold for filing a federal tax return.

Qualifying taxpayers who are at least 65 years old may also benefit from the:

credit for the elderly or the disabled, or
exclusion of gain on the sale of their house, or
increased standard deduction.

How can I get additional information about elderly tax issues?

Internal Revenue Service publication No. 554, Tax Information for Older Americans, and publication No. 503, Child and Dependent Care Expenses, are available annually. They, as well as other IRS publications and forms, can be obtained by calling (800) TAX-FORM or (800) 829-3676.

How Can I Get Help Filling Out My Tax Return?

Two tax preparation assistance programs are available in many areas. The Tax Counseling for the Elderly (TCE) program is for persons age 60 and over while the Volunteer Income Tax Assistance (VITA) program is for persons of all ages. Telephone numbers for such programs are included in the tax form instructions, or you may call your local Area Agency on Aging.

Senior Citizens may be exempt from Intangibles Taxes

The Kansas intangibles tax is a local tax on gross earnings from intangible property such as savings accounts, stocks, bonds, etc. The Kansas Individual Income Tax Booklet sent to you annually indicates which areas of the state have such a tax and what the tax rate is:

If you are subject to the intangibles tax, you may be eligible for a $5,000 income exemption if:

you have household income of $15,000 or less; and either
you are at least 60 years old during the year for which you are filing the return; or
you have been disabled or blind during all of the tax year.

If your income is above $15,000, the $5,000 income exemption is reduced by the amount that your income exceeds $15,000. Although intangibles tax returns are filed by April 15 with the Kansas Department of Revenue, your county clerk computes the tax owed and your county treasurer bills you for it.