Yes, even though the
money was not used in Kansas it will be taxed in Kansas since you were a
resident when it was distributed from the IRA.
The starting point for the Kansas income tax return is the
Federal Adjusted Gross Income (AGI).
Adjustments are made from there to add items that are taxed by Kansas
and not taxed on the Federal return or to subtract items that are tax on the
Federal return but are not taxed by Kansas.
There is a list of various retirement plan distributions
that are not taxed by Kansas, but I did not find a provision either in the
Kansas individual income tax return instruction booklet or within TurboTax for
excluding any IRA distributions from the Kansas taxable income.
To take a look at the Kansas instruction booklet for more
information, click here.
