On Apr 3, 3:29*pm, BeanTownSteve <s.cronmil...[at]gmail.com> wrote:
- quote -



No, It's income from an intangible asset (the CU account) and has its
source at the residence of the owner. Not taxable by Kansas.
Doesn't matter whether it is called interest or a dividend; the result
is the same.

Katie in San Diego

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<SNIPWhat the paragraph that you quoted from the
- quote -

it's a
credit union rather than a bank and he's an "owner" in the amount of
his cu shares?
Could it be that this might be construed as a Kansas Business
income
rather than interest?? It seems pretty out there to me but.....

- quote -

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"jayhawks71" wrote:
- quote -

What is the issue that has to be resolved? Why is any amount
of tax due? Why do you have to "proceed further"? In your
original post (on Feb. 7) you only asked whether you have to
file in Kansas, and whether you would owe Kansas tax.
Several experts here told you that the answer to both
questions is no. That should be the end of the matter. As
Phil Marti said, "just don't file a Kansas return and be
done with it."

Is there something else going on? Did the Kansas Department
of Revenue contact you for some reason? Why were you even
talking to them?

- quote -

If speaking "with Kansas" is anything like calling the IRS
on the phone, there is no assurance that the person you talk
to knows what she is talking about. In this case, it seems
that she didn't. What the paragraph that you quoted from the
instructions means, of course, is that if you are a
nonresident of Kansas, the interest from your credit union
account in Kansas is not Kansas source income to you. That's
exactly what the experts in this group told you.

- quote -

That doesn't give me a lot of confidence in her abilities. I
found it without being given the page number (page 24, left
column, a little more than halfway down). The page numbering
in the PDF does not match the numbers printed on the pages.
Maybe that's the problem.

Bob Sandler

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"jayhawks71" wrote:

- quote -

Sorry, I have no recollection of the thread.

If you are a nonresident of Kansas for the entire year and don't carry on
any business activities in Kansas during that year, interest paid on a
personal account is not Kansas source income regardless of where the
institution paying it is located.

Since this sounds prospective, IOW, Kansas isn't claiming you owe them
something from an unfiled return, just don't file a Kansas return and be
done with it.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

To follow up on my post that began this thread, I spoke with Kansas
today and they INSIST that the interest earned on a credit union
account is "Kansas source" because it "was from Kansas." I even tried
to get the supervisor to explain to me what the following, which is in
the Kansas tax booklet, means. However, for whatever reason she could
not find what I was referring to in spite of giving an exact page
number.

"Income received by a nonresident from Kansas sources es NOT
include:

Income from annuities, interest, dividends, or gains from
the sale or exchange of intangible property (such as bank
accounts, stocks or bonds) unless earned by a business,
trade, profession or occupation carried on in Kansas."

Any suggestions regarding how to resolve or escalate this issue? The
amount of tax due is small, but the more important issue is that I
want to know FOR SURE whether I need to file a Kansas return as long
as I have a bank account in that state!!! I appreciate the responses
thus far. I am hoping that someone could offer a suggestion regarding
how to proceed further. Thank you.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 6, 10:43*pm, jayhawks71 <jayhawk...[at]gmail.com> wrote:
- quote -


Under Kansas law, a nonresident is subject to tax on income from
intangibles (such as bank accounts) only to the extent that the
intangible is employed in a business, trade or profession in Kansas.
Kan. Stat. Ann. §79-32,109(h)(8) . Some states describe this
distinction as a "business situs" of the intangible.

Income from a personal bank account, not an asset of a trade or
business, generally is considered to have its source at the residence
of the owner. You do not have a filing requirement or any source
income in Kansas from this account.

Katie in San Diego

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"jayhawks71" <jayhawks71[at]gmail.com> wrote
- quote -





Nope.

It is taxable to Missouri though.







--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Unless there is something peculiar about KS tax law, the general rule is
that income derived from intangible assets (stocks, bonds, bank accounts,
etc.,) have no "source" state. States generally tax their residents on all
income, regardless of source, and tax nonresidents on income with a source
within that state (real property, business operations, personal services,
etc.).

Some pairs of states have tax agreements that alter this general rule. If KS
and MO are such a pair, it should be obvious in the instructions for
preparing the state returns.

Ira Smilovitz

"jayhawks71" <jayhawks71[at]gmail.com> wrote in message
news:dd4fb71b-d23b-4d10-87f1-dbdd8b6546ce[at]b2g2000hsg.googlegroups.com...
- quote -

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I am hoping someone can shed some light on the following:

I used to live in Kansas and had a credit union account there. I moved
from Kansas to Missouri about 4 years ago (2004), but maintained the
credit union account in Kansas. The account earns interest (a few
hundred dollars a year). So, I have two questions: 1) Do I have to
file a tax return in Kansas for the interest? 2) If yes, would I end
up owing Kansas tax on that interest even though I claimed the
interest on my MO tax.

Thank you in advance for any knowledgeable response.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >