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posted Feb 27, 2024 8:04:15 PM

I live in Kansas and I believe I qualify for the K-26 tax credit which would be the biggest credit available to me. How do I file this with TurboTax?

Qualified employer is a sole proprietorship, general partnership, limited partnership, limited liability company, corporation, other legally recognized business entity or public entity whose principal business activity involves the aviation sector.

Qualified employee is any person newly employed on a full-time basis by or first contracting with a qualified employer on a full-time basis on or after January 1, 2022, who has been rewarded an undergraduate or graduate degree, or a technical degree or certificate from a qualified program by an institution.
The credit amount for a qualified employee:

A taxpayer who becomes a qualified employee during the taxable year shall be allowed a credit equal to $5,000. The credit may be claimed each year a taxpayer achieves the status of a qualified employee for the four taxable years succeeding the tax year in which the credit was first allowed.

0 1 2020
1 Replies
Employee Tax Expert
Feb 27, 2024 8:28:05 PM

If you qualify, you can claim the credit when you prepare your KS resident tax return.   On the Take a look at Kansas credits and taxes page, scroll down and click Start next to Other Credits and Credit Carryovers.  Answer YES and then enter the amount on the KS-26 line; it is the 4th item in the list.   

 

A tax credit for certain qualified aviation and aerospace employers for tuition or certain program-specific course fee reimbursements paid to a qualified employee, for compensation paid to qualified employees in each of the first five years of employment, and for individuals who become qualified employees of aviation or aerospace employers.

 

  • A qualified employer is a sole proprietorship, general partnership, limited partnership, limited liability company, corporation, other legally recognized business entity or public entity whose principal business activity involves the aviation sector.
  • A Qualified employee is any person newly employed on a full-time basis by or first contracting with a qualified employer on a full-time basis on or after January 1, 2022, who has been rewarded an undergraduate or graduate degree, or a technical degree or certificate from a qualified program by an institution.

 

The credit amount for a qualified employer:

 

  • 10% of the compensation paid to a qualified employee in each of the first five years of employment, not to exceed $15,000 per year. This is a nonrefundable credit and cannot be claimed after the fifth year of employment.
  • 50% of the tuition reimbursed to a qualified employee during the tax year. The credit shall not be refundable and cannot be carried forward.

The credit amount for a qualified employee:

 

A taxpayer who becomes a qualified employee during the taxable year shall be allowed a credit equal to $5,000. The credit may be claimed each year a taxpayer achieves the status of a qualified employee for the four taxable years succeeding the tax year in which the credit was first allowed.