Does Kansas tax tips and overtime?

K.S.A. 79-32,117(a): 'Kansas adjusted gross income of an individual means such individual's federal adjusted gross income for the taxable year, with the modifications specified in this section.' Form K-40 line 1 is federal AGI, line 2 the Schedule S net modification, line 3 Kansas AGI. IRC 224 is below the line, so it does not touch federal AGI and cannot reduce Kansas AGI, and the statute's modification list contains no subtraction for qualified tips. Kansas has rolling conformity, but rolling conformity to federal AGI is irrelevant to a deduction taken after AGI. The one attempt to enact a state tip exemption — SB 277 (2025), 'exempting certain qualified tips from state income tax' — died in Senate Assessment and Taxation after a March 3, 2025 hearing.

Same analysis: IRC 225 reduces federal taxable income, not federal AGI, so it never reaches K.S.A. 79-32,117's starting number, and no Kansas subtraction modification exists for qualified overtime. SB 311 (2026 session, introduced Jan. 12, 2026, Sen. Corson), which would have eliminated Kansas income tax on qualified overtime compensation, died without advancing out of introduction. Tax Foundation scores Kansas at $0 of OBBBA individual provisions incorporated (versus roughly $129.8M forgone had it adopted the overtime deduction). Note the State of Kansas's own employee flyer on 'No Tax on Overtime' describes the benefit purely as a federal return item and says nothing about state relief.