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Solved

Kansas Municipal Bond Reporting

Forum|Forum|6 months ago
February 22, 2026
1 reply
93 views

I live in Kansas, and own a municipal bond from another state. My Kansas tax return (K40) asks that I list "Municipal Bond Interest Not Exempt from KS Tax, reduced by related expenses." This $ amount is then added to my federal AGI, so that the interest from the nonKS muni can be taxed by KS.

This nonKS muni paid me $1000 in coupon payments in 2025. I paid a premium when I bought the bond, resulting in a $200 amortized bond premium reported on the 1099-INT Box 13. Therefore I reported 1000-200=800 on the 1040 line 2a (Tax-exempt Interest).

Does KS want me to add $1000 to my FAGI? Or $800? In other words, does KS recognize bond premium paid on nonKS munies?

Best answer by ReneV4

No. KS does not want you to add $1,000. You should add $800 because Kansas follows the federal definition of income for these adjustments, so it recognizes the $200 reduction you reported on your federal return.

ReneV4Answer

Level 8

No. KS does not want you to add $1,000. You should add $800 because Kansas follows the federal definition of income for these adjustments, so it recognizes the $200 reduction you reported on your federal return.

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