Kansas Individual Development Account Credit

Individual Development Account Credit
K-68 Kansas Individual Development Account Credit Rev. 8-22
K-68

KANSAS

192018

INDIVIDUAL DEVELOPMENT ACCOUNT CREDIT

(Rev. 8-22)

For the taxable year beginning _________________________________ , 20 _______ ; ending _______________________________ , 20_______
Name of taxpayer (as shown on return)

Social Security Number or Employer ID Number (EIN)

If partner, shareholder or member, enter name of partnership, S corporation, LLC or LLP

Employer ID Number (EIN)

Enter exact date and amount of contributions made this taxable year (if additional space is needed, enclose a separate sheet):
Date

Amount

Date

Amount

_______________________________________

_______________________________________

_______________________________________

_______________________________________

_______________________________________

_______________________________________

_______________________________________

_______________________________________

_______________________________________

_______________________________________

_______________________________________

_______________________________________

PART A – COMPUTATION OF CREDIT AVAILABLE FROM THIS TAX YEAR’S CONTRIBUTIONS
1. Enter the total amount contributed to an Individual Development Account Reserve Fund this tax year. 1.

_______________________________

2. Enter your proportionate share percentage (see instructions).

2.

_______________________________

3. Credit allowed (multiply line 1 by line 2).

3.

_______________________________

4. Authorized credit percentage.

4.

_______________________________

5. Your share of the credit (multiply line 3 by line 4).

5.

_______________________________

%

75%

Form K-120 filers: Skip lines 6 through 8 and enter this amount on the appropriate line in
Part I of Form K-120 or Form K-120S.

PART B – COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR (FORM K-40 AND K-41 FILERS ONLY)
6. Amount of your total Kansas tax liability for this tax year after all credits other than this credit.

6.

_______________________________

7. Amount of credit this tax year (enter the lesser of lines 5 or 6).

7.

_______________________________

8.

_______________________________

Form K-40 or K-41 filers: Enter this amount on the appropriate line of Form K-40 or Form K-41.
If line 7 is less than line 5, complete PART C.

PART C – COMPUTATION OF REFUND (FORM K-40 AND K-41 FILERS ONLY)
8. Excess credit to be refunded (subtract line 7 from line 5).
Form K-40 or K-41 filers: Enter this amount on the appropriate line of Form K-40 or Form K-41.

INSTRUCTIONS FOR SCHEDULE K-68
GENERAL INFORMATION
K.S.A. 74-50,208 provides an income tax credit for
any program contributor that contributes to an individual
development account (IDA) reserve fund. Legislation
passed in 2012 limited this credit to C-Corps only; however
2015 legislation reinstated the credit for all income filers
for tax years commencing after December 31, 2014.
The credit is 75% of the amount contributed. If the credit
allowed exceeds the program contributor’s tax liability in
any one taxable year, the remaining portion of the credit
shall be refunded.
K.S.A. 74-50,227 requires the collection of certain
tax incentive information for publication on a database
managed by the Kansas Department of Commerce.
Information collected will include the name and address,
including county of the recipient receiving the benefits from
the tax incentive program, the annual amount of incentive
claimed, distributed or received, qualification criteria for
the incentive, and required benchmarks for continued
participation in the program and progress made towards
the benchmarks.
Limitation. No IDA Credit (Schedule K-68) shall be
allowed for any contribution made by a program contributor
which also qualified for a community service tax credit
claimed on Schedule K-60.

DEFINITIONS
Program Contributor: A person or entity who makes a
contribution to an IDA reserve fund.
IDA Reserve Fund: The fund created by an approved
community-based organization for the purposes of funding
the costs incurred in the administration of the program
by the financial institutions and the community-based
organizations and for providing matching funds for moneys
in IDAs.
Community-based Organization: Any religious or
charitable association or tribal entity that is approved by
the department to implement the IDA reserve fund.
Department: The Kansas Department of Commerce.

SPECIFIC LINE INSTRUCTIONS
Complete information as requested at the top of the
schedule.
PART A – COMPUTATION OF CREDIT AVAILABLE
FROM THIS TAX YEAR’S CONTRIBUTION
LINE 1 – Enter the total amount of contributions made to
an IDA reserve fund.
LINE 2 – Partners, shareholders or members of pass
through entities that have NOT elected to be taxed at the
entity level: Enter the percentage that represents your

proportionate share in the partnership, S Corporation,
LLC or LLP. If you have elected to be taxed at the entity
level, enter the sum of the percentages being taxed. All
other taxpayers: Enter 100%.
LINE 3 – Multiply line 1 by line 2 and enter the result.
LINE 4 – The credit is limited to 75% of the amount
contributed during this tax year.
LINE 5 – Multiply line 3 by line 4 and enter the result. This
is your share of the tax credit for contributions made this
tax year.
Form K-120 filers: Skip lines 6, 7, and 8 and enter the
amount from line 5 on the appropriate line of Part I,
Form K-120 or Form K-120S.

PART B – COMPUTATION OF TOTAL CREDIT
CLAIMED THIS YEAR
(FORM K-40 AND D-41 FILERS ONLY)

LINE 6 – Enter the amount of your tax liability after all
credits other than this credit.
LINE 7 – Enter the lesser of lines 5 or 6. This is the amount
of credit allowed for this tax year. Enter this amount on
the appropriate line of Form K-40 or Form K-41.
PART C – COMPUTATION OF REFUND
(FORM K-40 AND K-41 FILERS ONLY)

LINE 8 – Subtract line 7 from line 5. This is the excess credit
to be refunded. Enter this amount on the appropriate
line of Form K-40 or Form K-41.

TAXPAYER ASSISTANCE
Questions you have about qualifying for the Kansas
Individual Development Account Program should be
addressed to:
Kansas Department of Commerce
1000 SW Jackson Suite 100
Topeka KS 66612-1354
Phone: 785-296-4100
kansascommerce.gov
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
Additional copies of this credit schedule and other tax
forms are available from our website at: ksrevenue.gov