Retirement Contributions and Benefits

The amount you contributed from your salary to the Kansas Public Employees Retirement System is not taxable on your Federal return but is taxable on the Kansas return. Therefore, you must report this amount on Kansas Schedule S, Part A.

To determine the amount to be reported on your Kansas income tax return, you must subtract the amount shown on your W-2 in the wages, tips and compensation income box from the amount shown in the state and local wages income box on your W-2. Some employers will provide this figure for you on your W-2, indicating the amount is KPERS.

The amount you received as retirement benefits from the Kansas Public Employees Retirement System is not taxable on your Kansas return. The retirement benefits must be included in your federal adjusted gross income before it can be subtracted on your Kansas return. Retirement benefits taxed on your Federal return must be entered on Kansas Schedule S, Part A.

Other common Kansas pension plan retirement benefits that are not taxable on the Kansas return are Kansas Police and Fireman's Retirement System Pensions, Kansas Teacher's Retirement Annuities, Kansas Highway Patrol pensions, Justices and Judges Retirement system, Board of Public Utilities and State Board of Regents.

KPERS retirement benefits, and all earning thereon, that are rolled over into a qualified retirement account are not subject to Kansas income tax. Subsequent distributions from these qualified retirement accounts of KPERS retirement benefits and earnings thereon are also exempt from Kansas Income Tax as KPERS retirement benefits whether the KPERS benefits are segregated from or commingled with, other retirement funds.

Therefore, amounts withdrawn from a qualified retirement account, including any earnings thereon, are not subject to Kansas Income Tax to the extent the amounts withdrawn were: 1) Originally received as a KPERS lump sum payment at retirement that you rolled over into a qualified retirement account (or earnings thereon), and 2) the amount of the withdrawal is included in federal adjusted gross income.

Retirement annuity contracts purchased for faculty and others employed by the State Board of Regents or by educational institutions under its management with either their direct contributions or through salary reduction plans are exempt from Kansas Income Tax. However, when these Regents retirement benefits are rolled into an unrelated retirement plan and distributions are taken from these unrelated retirement plans, said distributions are subject to Kansas Income Tax.

Effective for all taxable years commencing after December 31, 2023, social security benefits that are included in federal adjusted gross income are not subject to Kansas income tax. These social security benefits will be reported as a subtraction modification on Schedule S, Part A. For taxable years prior to January 1, 2024, if your federal adjusted gross income is $75,000 or less, regardless of your filing status, your social security benefits are exempt from Kansas income tax. The exemption for social security benefits applies only to the extent the benefits are included in your federal adjusted gross income.

No. The retirement benefits must be included in your federal adjusted gross income before it can be subtracted on your Kansas return. Retirement benefits taxed on your Federal return must be entered on Kansas Schedule S, Part A.

No. The retirement benefits must be included in your federal adjusted gross income before it can be subtracted on your Kansas return. Retirement benefits taxed on your Federal return must be entered on Kansas Schedule S, Part A.

No. Retirement plans administered by the U.S. Railroad Retirement Board are not taxable. This includes U.S. Railroad Retirement Benefits, tier one, tier two, dual vested benefits, and supplemental annuities. The retirement benefits must be included in your federal adjusted gross income before it can be subtracted on your Kansas return. Retirement benefits taxed on your Federal return must be entered on Kansas Schedule S, Part A.