Individual Development Account Credit
INCOME TAXPAYER-Effective for all taxable years beginning after December 31, 2004.
An income tax credit shall be allowed for any program contributor that contributed to an individual development account reserve fund.
QUALIFICATIONS
A community-based organization shall be approved by the Department
of Commerce to implement the individual development account reserve
fund.
Kansas Department of Commerce
1000 SW Jackson, Suite 100
Topeka, KS 66612-1354
(785) 296-3485
http://kdoch.state.ks.us
CREDIT AMOUNT
The credit is 50% of the amount contributed to an individual development
account reserve fund.
INDIVIDUAL DEVELOPMENT ACCOUNT REFUND
If the credit allowed exceeds the program contributor’s tax
liability in any one taxable year, the remaining portion of the
credit shall be refunded.
LIMITATION OF CREDIT
No credit shall be allowed for any contribution made by a program
contributor to individual development account reserve fund which
also qualified for the community service contribution credit
with the same contribution.
PROCEDURES TO CLAIM THE CREDIT
You may download Schedule K-68
to claim the Individual Development Account Credit. This schedule
must be completed and submitted with the income tax return. You
may also call the Department of Revenue voice mail system at (785)
296-4937 to request Schedule K-68. You will be asked to give your
name, address, phone number and form(s) you desire. Please allow
two weeks for delivery of your forms.
INDIVIDUAL DEVELOPMENT ACCOUNT DEFINITIONS
PROGRAM CONTRIBUTOR
A person or entity who makes a contribution to an individual development
account reserve fund.
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INDIVIDUAL DEVELOPMENT ACCOUNT
RESERVE FUND
A fund created by an approved community-based organization for the purposes of
funding the costs incurred in the administration of the program by the financial
institutions and the community-based organizations and for providing matching
funds for moneys in individual development accounts.
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COMMUNITY-BASED
ORGANIZATION
Any religious or charitable association or tribal entity that is approved by
the Department of Commerce to implement the individual development account reserve
fund.
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