Kansas Application for Carry Back of Net Operating Farm Loss Refund

Application for Carry Back of Net Operating Farm Loss Refund
K-67 Schedule for Carrbyback of Net Operating Farm Loss Refund (Rev. 9-08)
K-67

194001

KANSAS

SCHEDULE FOR CARRYBACK OF
NET OPERATING FARM LOSS REFUND

(Rev. 8-18)

For the taxable year beginning _________________ , 20____ ; ending _________________ , 20____ .
Name of taxpayer (as shown on return)

Social Security Number or Employer Identification Number (EIN)

If partner, shareholder or member, enter name of partnership, S corporation, LLC or LLP

Employer Identification Number (EIN)

SUBMIT THIS SCHEDULE AND A COPY OF YOUR

FEDERAL FORM 1045, WITH YOUR INCOME TAX RETURN.

Did you experience a change in marital status or file any of the carry back years with a different filing status than the loss
year? ‰ No ‰ Yes If yes, you need to complete Schedule IV (see instructions).
Schedules I, II and IV have been provided to assist you in completing Schedule III. For assistance in completing
this refund application you may contact the Kansas Department of Revenue, 120 SE 10th St, PO Box 758571., Topeka,
KS 66675-8571, or call (785) 368-8222.

SCHEDULE I

SCHEDULE II

KANSAS COMPUTATION SCHEDULE

KANSAS COMPUTATION SCHEDULE

(See Instructions)

(See Instructions)

LOSS YEAR
_________
(A)
1. Taxable income per Kansas return ..
2. Net operating loss from prior year ...
3. Net capital loss .................................
4. Nontaxable capital gain ....................
5. Exemptions ......................................
6. Excess nonbusiness deductions ......
7. Other adjustments:
a. Charitable contributions ...............
b. __________________ ................
8. Net operating loss ............................
9. Modified taxable income ...........................................
10. Net operating loss carryback:
a. Net operating loss carried to 5th preceding year
b. Net operating loss carried to 4th preceding year
c. Net operating loss carried to 3rd preceding year
d. Net operating loss carried to 2nd preceding year
e. Net operating loss carried to 1st preceding year
11. Remaining unused net operating loss .......................

CARRYBACK YEARS
________
(B)

________
(C)

________
(D)

________
(E)

________
(F)

35. Excess amount of tax to be carried forward.
(Subtract line 34 from line 32. Enter here and
on line 31 for the next year.)

34. Amount of refund (the lesser of line 32 or line 33)

33. Refund limitation

32. Total overpayment (add lines 30 and 31)

31. Carryover (from line 35)

30. Decrease in tax (subtract line 29 from line 28)

29. Enter amounts from line 28, Columns H, J, L, N & P

28. Balance (subtract line 27 from line 23)

27. Total credits (add lines 24, 25, and 26)

26. Other credits

25. Credit for child and dependent care expenses

24. Credit for taxes paid to other states

23. Total (Residents: add lines 19 and 22)
(Nonresidents: add lines 21 and 22)

22. Kansas tax on lump sum distributions

20. Nonresident allocation percentage
(Nonresidents only, from Schedule S, Part B)
21. Nonresident tax
(Nonresidents only, multiply line 20 by line 21)

19. Kansas tax liability

18. Taxable income (subtract line 17 from line 14)

17. Total (add lines 15 and 16)

16. Personal exemptions

15. Total of itemized or standard deduction

14. Subtract line 13 from line 12

12. Kansas adjusted gross income before
adjustment for carry back
13. Net operating loss deduction resulting from
carryback

$1,500

%

Return as filed or
liability as last
determined
(G)

%

Liability after
application of
carryback
(H)

5th preceding tax year ending
______________________

$1,500

%

Return as filed or
liability as last
determined
(I)

%

Liability after
application of
carryback
(J)

4th preceding tax year ending
_____________________

$1,500

%

Return as filed or
liability as last
determined
(K)

%

Liability after
application of
carryback
(L)

$1,500

%

Return as filed or
liability as last
determined
(M)

%

Liability after
application of
carryback
(N)

3rd preceding tax year ending 2nd preceding tax year ending
_____________________
_____________________

SCHEDULE III – KANSAS APPLICATION SCHEDULE

$1,500

%

Return as filed or
liability as last
determined
(O)

%

Liability after
application of
carryback
(P)

1st preceding tax year ending
_____________________

194002

194003
SCHEDULE IV – KANSAS ALLOCATION SCHEDULE
Complete this schedule only if any one of the years involved was filed with a different filing status than any other year. You
must complete this schedule for EACH YEAR that an allocation is necessary (see instructions).

Year _____________

Joint
Income
(Q)

Taxpayer
Income
(R)

Spouse’s
Income
(S)

36. Wages, salaries, tips, etc.
37. Interest taxable to Kansas
38. Dividends less exclusion
39. Business income
40. Taxable capital gains and losses
41. Rents, royalties and partnerships
42. Farm income
43. Other income (include any net operating losses from prior years)
44. Total income (add lines 36 through 43)
45. Less standard or itemized deductions
46. Less federal tax
47. Less exemptions
48. Taxable income (Line 44 minus lines 45, 46 and 47. Enter the result in the appropriate year’s
column on line 1, Schedule I or II. Do not complete lines 49 through 57 unless you are on
Step 3; see instructions.)
49. Tax on joint filing status
50. Tax on married filing separate status
51. Total of taxpayer’s and former spouse’s tax (add amount on line 50, columns R and S)
52. Subtract net operating loss from taxpayer’s taxable income (line 48, column R, minus line 8,
Schedule I). This amount cannot be less than zero.
53. Add line 52 column (R) to line 48, column (S) and enter the result
54. Determine tax on income shown on line 53 using married filing joint rates
55. Divide line 50, column (R), by line 51
56. Taxpayer’s recomputed share of joint liability (multiply line 54 by line 55)
57. Amount of tax actually paid by each spouse (withholdings, estimate payments,
remittances, etc.)
58. Taxpayer’s portion of decrease in tax (subtract line 56 from line 57)

SCHEDULE V – FARM NET OPERATING LOSS (REFUND / CARRY FORWARD TRACKING)
(a) Taxable year: ____/____/____ to ____/____/____
(b) Loss year: ____/____/____ to ____/____/____
(c) Amount from K-67, Schedule III, Line 35: _____________________
(d)
Amount of Refund
(limited to $1,500 per year)
Tax Year: __ __ __ __
Tax Year: __ __ __ __
Tax Year: __ __ __ __
Tax Year: __ __ __ __
Tax Year: __ __ __ __
Tax Year: __ __ __ __
Tax Year: __ __ __ __
Tax Year: __ __ __ __
Tax Year: __ __ __ __

(e)

(f)

(g)

Tax Liability

Amount of Carry Forward
(limited to tax liability amount)

Balance

INSTRUCTIONS FOR FORM K-67

Kansas tax laws regarding Net Operating Losses (NOL) are in conformity
with the Federal NOL tax laws. In order to have a Kansas NOL, you must
have all of the following: 1) a Federal NOL; 2) Kansas income tax return
and supporting schedules on file for the loss year; and 3) an income or
loss from Kansas sources or a Kansas resident for at least part of the year
the loss was incurred.
Generally, a Kansas NOL must be carried forward or backward in the
same manner as the Federal NOL. This means if you did not carry back
on the Federal return, you cannot file a Kansas NOL carry back claim. If a
NOL was incurred in a taxable year beginning after 12/31/87, the loss may
ONLY be carried forward 10 taxable years (complete Kansas Form CRF).
For farm NOLs [as defined by 26 U.C.S. 172(i)] a NOL deduction is
allowed under Kansas law in the same manner that it is allowed under the
Federal internal revenue code except that such NOL may be carried forward
to each of the 10 taxable years following the taxable year of the NOL.
Furthermore, farm NOLs incurred in taxable years beginning after 12/31/
99 may be carried back five taxable years.
If there was a change in marital status (divorce, marriage, or death of
one of the spouses) between the year of the loss and any of the years to
which the loss is carried, see instructions for Schedule IV.
K.S.A. 79-32,143(f) provides that no refund of income tax which results
from a farm NOL carry back shall be allowed in an amount exceeding
$1,500 in any year. Effective in tax year 2006, any overpayment in excess
of $1,500 may be carried forward to any year or years after the year of
the loss and may be claimed as a credit against the tax.
There are potentially four steps involved in a farm NOL carryback: STEP
1 is computing the amount of the loss allowable for carryback; STEP 2 is
determining how much of the allowable loss will be carried back to each
year; STEP 3 is applying the correct amount of loss to each year to
determine the resulting refund, and STEP 4 tracks the refunds and
carryforwards. Each step corresponds to a schedule on this form.

SCHEDULE I
Column A
LINE 1: Enter the loss year (2007 if the loss occurred in tax year 2007) in
column A. Enter the Kansas taxable income from the loss year. This
amount will be a negative figure (Line 7, K-40).
LINE 2: If any prior year NOL is included in the adjusted gross income,
enter the amount on line 2. Since you are reducing the allowable loss
shown on line 1 by the amounts shown on succeeding lines, the amount
entered will be a positive figure.
LINE 3: Enter the same capital loss that was computed on your Federal
NOL claim as a positive figure.
LINE 4: Enter the portion of the Federal long-term capital gains excluded
from income.
LINE 5: Enter amount of the personal exemption allowance claimed on
the Kansas return.
LINE 6: Enter amount of the Kansas nonbusiness deductions in excess of
Kansas nonbusiness income. Note that although the same method is
used to compute this as is used to compute the Federal NOL, income
(i.e., municipal and Federal bonds, etc.) and deductions (i.e., itemized
or standard deductions, etc.) are not the same on the Federal return
as on the Kansas return, therefore, the Kansas NOL in some cases
will be a different amount.
LINE 8: Reduce the loss on line 1 by the total of lines 2 through 6. If the
answer is a negative figure, this will be your Kansas NOL. Carry the
NOL from line 8 to line 10a, column B, Schedule II and also, to line 13,
column H, Schedule III.

SCHEDULE II
Enter the carry back years in columns B, C, D, E & F (if the loss year is
2007 in column A, then column B will be 2002, column C will be 2003,
column D will be 2004, etc.). The NOL must be carried to the 5th year
preceding the year of the loss (column B). If any loss remains, it is carried
to the 4th year preceding the year of the loss (column C) and then to the
3rd year prior to the loss year (column D), etc. The computations for
Schedule II are essentially the same as those for Schedule I, with a few
exceptions. The excess nonbusiness deductions are not added back.
LINE 7A: If the allowable portion of the charitable contributions shown
on the Federal itemized deductions have been increased, show the
same adjustment as shown on the Federal NOL claim on line 7a.
LINE 9: Add lines 1 through 7 to determine the modified taxable income
and enter the total on line 9 (cannot be less than zero).
LINE 10: This is the unused portion of the NOL.

Column B: If the loss exceeds modified taxable income, show the
difference on line 10a.
Column C: If the loss exceeds modified taxable income, show the
difference on line 10b.
Column D: If the loss exceeds modified taxable income, show the
difference on line 10c.
Column E: If the loss exceeds modified taxable income, show the
difference on line 10d.
Column F: If the loss exceeds modified taxable income, show the
difference on line 10e.
LINE 11: If the loss in Column F exceeds the modified income, the
remainder is shown on line 11 and must be carried forward (the
carryforward is limited to 10 years).

SCHEDULE III
Columns G, I, K, M and O are brought directly to Schedule III from the
carry back year returns UNLESS there has been a prior amendment or
adjustment, in which case the amounts entered should be those on the
last amendment or adjustment. Columns H, J, L, N and P show how these
items would change after the loss is applied. The amounts on Schedule II,
lines 10(a), 10(b), 10(c), 10(d), and 10(e) will be the amounts used for the
corresponding year on Schedule III, line 13, columns H, J, L, N and P.

SCHEDULE IV
This schedule is used when there is a change in marital status between
year of the loss and any of the years to which the loss is to be carried. The
NOL of one spouse normally cannot be applied to the income of the other
spouse; therefore, it is necessary to determine what portion of the jointly
filed return applies to the spouse who sustained the loss. There are two
situations, which are exceptions to the rule.
Situation 1 – The taxpayer was married in the loss year, one spouse
had a NOL but the other spouse did not, and the prior years were filed on
a single or married filing separate basis. In this situation, the spouse who
had no NOL may file jointly with the spouse who had a NOL, but the loss
can only be carried back to the income of the spouse who sustained the
loss. In this situation, you should complete lines 36 through 48 to verify
that both spouses do have a loss.
Situation 2 – A joint return is filed with the same spouse on both the
loss year and all the years to which the loss is carried. In this situation do
not complete Schedule IV.
NONRESIDENTS: A nonresident must determine the net operating loss
as though he were a Kansas resident. The information shown on the
nonresident allocation percentage schedule is not used to determine a
Kansas NOL. Read the instructions for completing this schedule before
completing your nonresident Kansas return.
REFUND CARRYOVER: NOLs may be exhausted before taxpayers
receive all tax refunds due to the $1,500 per year refund limitation. Use
Schedule III, Line 35, Columns G, I, K, M and O to report these refund
carryovers.

SCHEDULE V
Schedule V - This schedule is used to track refunds and carryforwards.
Beginning with tax year 2006 some or all of the tax refund realized as a
result of a farm NOL carryback may be carried forward as a credit toward
next year’s tax liability.
Column (a): Enter the taxable year.

Column (b): Enter the loss year from which the overpayment of tax results.

Column (c): Enter the amount from K-67, Schedule III, Line 35.

Column (d): Enter the amount of refunds, by tax year, already issued to

you as a result of a farm NOL. A maximum refund of $1,500 per year
is allowed as a result of a farm NOL. For tax year 2006, taxpayers
may carry forward some of all of the overpayment of tax (as a result of
a farm NOL carry back) to any future year or years to be used as a
credit against any tax owed. For tax years 2006 and after, enter in
column (d) the amount of refund, if any, you are requesting this tax
year - capped at $1,500. Enter this same amount on the appropriate
line of Form K-40 or Form K-41, refundable credit.
Column (e): For tax years beginning with 2006, enter the amount of your
tax liability for this tax year after all credits other than this credit.
Column (f): For tax years beginning with 2006, enter the amount of credit
you want applied to this tax year's liability. Do not enter more than
this year’s tax liability. Enter this same amount on the appropriate
line of Form K-40 or Form K-41, nonrefundable credit.
Column (g): Enter the balance of the overpayment here. Subtract the
sum of column (d) and column (f) from the previous year's balance.