State tax exemption adjusted again?

[angeld]

This is the second year in a row that I have received a letter stating that my Kansas state taxes have been adjusted and I owe more money.  It states that my exemption allowance is too much and so they adjust it and add money to total taxable income.  Why is federal exemptions correct but the state is saying there are too many?  Now I'm being asked to pay than I already and this is the second year.  What is going wrong?  Appreciate any help.

[BMcCalpin]

What I believe that you are asking is, "Why is my withheld tax for Kansas not enough to cover my Kansas state income tax due at the end of the year?" Is that correct?

This is really more of a payroll question than a tax question. Do note, however, that the IRS adjusted their withholding tables for 2018 to withhold less federal tax because of the recent tax "reform"; I don't know if Kansas went through a similar exercise.

I don't live in a state that has a state income tax so I am not clear on how the W-4 application (how you claim  exemptions with your employer to determine how much federal withholding you will have) works for your state. However, I have to assume that you can go to your payroll department and ask them to increase the amount of withholding on your Kansas income without affecting your federal return. Go ask them.

[VolvoGirl]

@BMcCalpin  I don't think that's it.  This is after they file.  Then the state sends them a letter.

[BMcCalpin]

@VolvoGirlyou may be right. The taxpayer said "It states that my exemption allowance is too much and so they adjust it ", so the word "exemption" suggests their W-4 exemption...or the taxpayer may have meant that letter  said that the exemption amount on the K-40 on line 5 ($2,250 times the number of exemptions) was too high...in which case, we would need to find out what the letter actually says and what the taxpayer reported on both the federal and the state returns.

[angeld]

Yes, it is the $2,250 allowed per dependent. In Kansas, if you file as head of household, you are allowed one more exemption. There should be a total of 4 but the amount shown indicates that it was actually 5. The federal tax includes the correct number of exemptions/dependents so I'm confused as to what is happening with the state tax. The letter states that the exemptions allowed was exceeded and therefore resulted in an underpayment after the Department of Revenue made adjustments.

[BMcCalpin]

So, on your federal return, you listed yourself as HOH and two dependents, right? Those 2 plus the one extra for the HOH status would add up to 4. Yet your Kansas return had 5?

So on page 1 of the K-40 form, what were the amounts entered for the three boxes: "(1) Enter the total exemptions for you, your spouse (if applicable), and each person you claim as a dependent. (2) If filing status above is Head of household, add one exemption. (3) Total Kansas exemptions."

Were your two dependents listed in the list below this? "Enter the requested information for all persons claimed as dependents."

Just as an aside, were any of the dependents 18 years or older by December 31, 2018?