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Why is the software charging a fiduciary income tax on a Kansas Estate return when there is no federal tax due?

GPSN
Level 1
 
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7 Comments 7
BobKamman
Level 15

Why not?

Some deductions allowed on the federal return are probably not allowed by Kansas.  For example, state income taxes.  

BobKamman
Level 15

Another reason could be the estate's taxable income is from capital gains -- zero tax rate on lower amounts for federal, no tax break for nearly-bankrupt Kansas.  

GPSN
Level 1

Thanks for your response. 

My research indicates there will be no state tax due if there is no federal tax due for the estate. This is not a business return with future income but a simple estate. Paying tax on this return will cause double taxation to the tax payer. I can't find anyway to remove the Kansas tax in the software.

 

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Just-Lisa-Now-
Level 15
Level 15

Follow the money through the KS return (print it out if need be)...what is being taxed?  Is it correct?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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sjrcpa
Level 15

and/or qualified dividends.

The more I know, the more I don't know.
GPSN
Level 1

Thank you for responding.

No the amount they are taxing is not correct. They are taxing 1 of the beneficiaries and not the other on 1/2 of the income received.Both  Beneficiaries  will have to pay tax on the income received on their 2020 taxes. The estate is not required to pay tax on the K41 return.

 

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sjrcpa
Level 15

Is one a resident of Kansas and one a nonresident?

The more I know, the more I don't know.