Governor Laura Kelly Signs Senate Bill 360, Enhancing Tax Flexibility

By Trish Svoboda

On April 4th, Governor Laura Kelly signed Senate Bill 360, providing Kansas taxpayers with more flexibility in their contributions to 529 program accounts, qualified ABLE program accounts, and first-time home savings accounts. This bill permits Kansans to decide when they want to deduct these contributions from their state income tax, allowing for deductions to be applied to either the current or prior tax year filing. This aligns these accounts with tax filing deadlines, rather than the calendar year, offering more convenience to taxpayers.

The deduction can only be claimed for a single tax year. The bill, effective from the 2023 tax year, allows Kansans to make additional contributions for 2023 and benefit from the tax deduction in their 2023 tax returns.

S.B. 360 also establishes an advisory committee tasked with providing recommendations for the execution and management of the 529 program. The state treasurer is responsible for appointing the members who serve on this council.

“We appreciate the work of the legislature and governor to enact Senate Bill 360 to align the contribution deadline for our state tax-deductible savings programs with the April 15 tax filing deadline,” said Kansas State Treasurer Steven Johnson. “This will allow owners of Learning Quest 529, ABLE Savings, and First-Time Home Buyers Accounts the opportunity to make additional contributions and take advantage of the available tax deductions as they are preparing their tax returns.”

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