Kansas Composite Income Tax Schedule

Composite Income Tax Schedule
K-40C Composite Income Tax Schedule Rev. 7-21
K-40C

KANSAS

110418

COMPOSITE INCOME TAX SCHEDULE

(Rev. 7-21)

For the taxable year beginning

____________________________________

, 20 _____________ ; ending

___________________________

________________________________

Year

, 20 ___________

Name of S Corp or Partnership

Employer ID Number (EIN)

Tax Preparer’s Name

Tax Preparer’s Phone Number

(1)
Nonresident Owner Name

TOTAL

(2)
Social Security Number

(3)
State of
Residence

(4)
Apportionable
Business Income
from Form K-120S

(5)
Filing
Status

(6)
Number of
Exemptions

(7)
Exemption
Allowance

(8)
Standard
Deduction

(9)
Kansas Taxable
Income

(10)
Tax Before
Allocation

(11)
Total Kansas
Income from Form
K-120S

(12)
Kansas
Nonresident Tax

(13)
Kansas
Estimated Tax

(14)
Balance Due
(or Refund)

INSTRUCTIONS FOR SCHEDULE K-40C
GENERAL INFORMATION

(Round ALL dollar figures to the nearest whole dollar)

Any partnership or S corporation required to file a
Kansas income tax return may elect to file a composite
income tax return for its nonresident partners or
nonresident shareholders that derive income from the
partnership or S corporation. Any nonresident partner
or nonresident shareholder may be included in a
composite return unless the partner or shareholder has
income from a Kansas source other than the partnership
or S corporation. At this time, the Kansas Department
of Revenue does not require written approval to file a
composite return. Nonresident partners and nonresident
shareholders included in a composite return shall not
file a separate income tax return.
IMPORTANT—Schedule K-40C cannot be filed
by a trust (file a Kansas Fiduciary Income Tax return,
Form K-41), or for any tax year that the S corporation
or partnership is claiming a special tax credit or a net
operating loss (NOL).
If your partnership or S corporation qualifies to
complete a composite income tax return, a Kansas
Individual Income Tax Return, Form K-40, must be
completed for the partnership or S corporation in that
specific entity’s name and EIN. The totals from the
K-40C (columns 12 through 15) will be transferred
to Form K-40. Enclose a copy of the K-40C with
Form K-40. Each composite return shall be filed
and any applicable tax paid by the partnership or S
corporation on or before the 15th day of the fourth
month following the close of the taxable year of the
partnership or S corporation.

COLUMN 4—Enter each nonresident’s share of the
“Apportionable Business Income” from Form
K-120S. Multiply line 14* of Form K-120S by the
percentage for each partner/shareholder from the
K-120S, Part II, Column 4.

SPECIFIC COLUMN INSTRUCTIONS
COLUMN 1—Enter the names of nonresident
shareholders or partners (owners).
COLUMN 2—Enter the Social Security number of
each nonresident owner.
COLUMN 3—Enter the nonresident owners’ state
of residence.

COLUMN 5—The filing status for Kansas must be
the same as that used on the shareholder’s
or partner’s federal income tax return, except
that Kansas does not recognize the “Qualifying
Widow(er) with Dependent Child” status. If a
shareholder or partner filed as a “Qualifying
Widow(er) with Dependent Child,” on the federal
return, they will file as “Head of Household” on
the K-40C.
COLUMN 6—Shareholders and partners are entitled
to the same number of exemptions as claimed
on their federal income tax return. If the Kansas
filing status in column 5 is “Head of Household,”
enter one additional exemption.
COLUMN 7—Multiply the number of exemptions from
column 6 by $2,250.
COLUMN 8—The shareholders or partners must use
the standard deduction on a composite return.
The Kansas standard deduction is as follows:
Filing Status

Single
Head of Household
Married Filing Joint
Married Filing Separate

Base
Deduction

$3,500
$6,000
$8,000
$4,000

Additional
Deduction

$850
$850
$700
$700

An additional deduction amount is allowed for persons
who are age 65 or over and/or blind.

COLUMN 9—Kansas taxable income. Income
subject to Kansas income tax (subtract the total
of columns 7 and 8 from column 4).

COLUMN 10—Tax before allocation. This is derived
by applying Kansas tax computation schedule to
the amount in column 9.
COLUMN 11—Enter each nonresident’s share of
Total Kansas Income from Form K-120S by
multiplying line 19* of Form K-120S by the
percentage for each partner/shareholder from
the K-120S, Part II, Column 4.
COLUMN 12—Kansas nonresident tax: Column 10
multiplied by nonresident allocation percentage
(this percentage determined by dividing column
11 by column 4 and rounding the result to the
fourth decimal place; not to exceed 100.0000).
Enter the total amount from K-40C on the
applicable line of Form K-40.
COLUMN 13—Amount of Kansas estimated tax
paid. Enter total from K-40C on applicable line
of Form K- 40.
COLUMN 14—Balance due or refund: Subtract total
in column 13 from total in column 12. Enter the
result in column 14 and on the applicable line of
Form K-40 for either a balance due or refund.
* Line number references are subject to change.
TAXPAYER ASSISTANCE
For assistance in completing this schedule contact
the Kansas Department of Revenue:
Taxpayer Assistance Center
Scott Office Building
120 SE 10th Ave
PO Box 750260
Topeka KS 66699-0260
Phone: 785-368-8222
Fax: 785-291-3614
This schedule and other tax forms are available
from our website at: ksrevenue.gov