THE HOMESTEAD REFUND is a rebate of a portion of the property taxes paid on Kansas residents homestead. Your refund percentage is based on your total household income. If you own your home, the refund is a percentage of your general property tax. If you rent your homestead, 20% of the "rent paid for occupancy" is used as the property tax amount. The maximum refund is $600.

What is a Homestead?

A HOMESTEAD is the house, apartment, rented room, boarding house, mobile or manufactured home, or other dwelling (such as a nursing home, retirement home, assisted living facility) that you own or rent and occupy as a residence.

If you moved during 2001, you may claim the general property tax or rent paid for the period of time you lived in each residence. Homeowners who rent part of their homestead or use a portion of it for business may claim only the general property tax paid for the part in which they live.

What is Rent Paid for Occupancy?

RENT PAID FOR OCCUPANCY is the amount of rent YOU paid during 2001 to occupy your homestead. The value of the furniture, appliances, utilities, or services furnished by your landlord must be deducted from the total rent you paid during the year. Renters must complete Schedule RNT to determine the amount of rent for occupancy. If you live in a nursing home or share living quarters with your landlord, follow the special instructions on the back of Schedule RNT.

Who May Qualify?

The homestead refund program is for homeowners and renters who were residents of Kansas all of 2001. As a Kansas resident the entire year, you are eligible if your total household income is $25,000 or less and you:

Were born before January 1, 1946, OR
Were blind or totally and permanently disabled all of 2001, OR
Have a dependent child who lived with you the entire year who was born before January 1, 2001, and was under the age of 18 all of 2001.
What is a Household?

A HOUSEHOLD is you, or you and your spouse who occupy the homestead or you and one or more individuals not related as husband and wife who together occupy a homestead.

What is Household Income?

HOUSEHOLD INCOME is all taxable and nontaxable income received by all household members during 2001.

If a household member lived with you only part of the year, you must include the income he or she received during the months that individual lived with you.

Household income includes, but is not limited to:

Taxable and nontaxable wages, salaries, and self-employment income;
Earned income credit;
Taxable and nontaxable interest and dividends;
Social Security and Supplemental Security Income, (SSI) benefits (except disability payments);
Railroad Retirement benefits;
Veterans' benefits and all other pensions and annuities;
Welfare and TAF (Temporary Assistance to Families) payments (formerly known as AFDC);
Unemployment, worker's compensation and disability income;
Alimony received;
Business and farm income;
Gains from business property sales, investment property sales, and any long-term capital gains included in federal adjusted gross income;
Net rents and partnerships;
Foster home care payments, senior companion stipends, and foster grandparent payments;
School grants and scholarships (unless paid directly to the school);
Gambling winnings, jury duty payments, and other miscellaneous income;
ALL OTHER INCOME received during 2001 not specifically excluded (see below).
NET OPERATING LOSSES and net capital losses may not be used to reduce total household income. DO NOT subtract any net operating losses or net capital losses from the income amounts.

Household income does not include Social Security disability payments, previous year's Homestead and Food Sales tax refund, Income Tax or utility refunds, food stamps (vision cards), personal or student loans, lump sum settlements, or gifts from nongovernmental sources. Although these forms of income are not considered to be household income, it is helpful if you list the annual amounts received in the "Excluded Income" section of Form K-40H.

Who May Claim a Refund?

Only one claim may be filed for each household. A husband and wife who occupy the same homestead will file one claim. Two or more individuals who together occupy the same household may only file one claim. A husband and wife who occupy separate households (such as one spouse living in a residence and the other spouse living in a nursing home) should file separate claims and include only their individual income.

Homeowners: You must not owe any delinquent property taxes on your home. You must enclose a copy of your property tax statement to your claim.

Renters: The rental property must be on the tax rolls and subject to property tax. You may claim only that portion of the rent YOU pay. Rent paid for you from public funds (such as HUD) is not considered.

If the property you rent is not on the tax rolls, you do not qualify for a Homestead refund.

If a claimant is incapable of signing the claim, the claimant's legal guardian, conservator, or attorney-in-fact may file the claim. When filing on behalf of an eligible claimant, a copy of your legal authority is required. See "Signature" on page 20.

Where to Get Forms

A Homestead Claim Booklet is mailed to individuals who filed a 2000 claim and whose address has not changed. If you have moved or if you have not filed before, you may pick up the Homestead Claim Booklet at our Topeka Assistance Center, driver's license stations, your city or county clerk's office, or other places where tax forms are available (banks, libraries, post offices, etc.) The forms and booklet are also available from our web site: www.ksrevenue.org

If you are unable to obtain forms locally, call our forms request line at (785) 296-4937, and we will mail them to you. Please allow 10 days for delivery.

When and Where to File

File your claim after December 31, 2002, but NO LATER THAN April 15, 2003. If you do not have the pre-addressed envelope, mail your claim to:

Homestead Claim
Kansas Department of Revenue
915 SW Harrison Street
Topeka, Kansas 66699-2000

Late claims: The department may now accept a claim filed after the due date whenever good cause exists, provided that the claim is filed within four years of the original due date. Examples of good cause include, but are not limited to, absence of the claimant from the state or country or temporary illness of the claimant at the time the claim was due. When filing a late claim, enclose an explanation with documentation as to why it is late. Late claims will also be accepted if a federal extension of time is enclosed with your claim.

Deceased Claimants

When the person who has been the claimant for a household dies, another member of the household who qualifies as a claimant should become the claimant and file Form K-40H for the household. A separate claim on behalf of the decedent is not necessary.

If another member of the decedent’s household (such as a surviving spouse) does NOT qualify to be the claimant, or when there are no other member of a decedent’s household, a claim may be filed for a deceased claimant if the decedent:

(A) was a resident of Kansas all of 2001, but died before filing a claim (died after January 1, 2001), OR

(B) died during 2001 and was a Kansas resident the entire part of year he or she was living.

IMPORTANT: Mark an “X” in the decedent box located to the right of the “Last Name” area on the front of the Form K-40H, and enter the date of death in the space provided.

A surviving spouse, executor or administrator, or any other heir at law may claim the homestead refund due a decedent.

To Compute a Decedent's Refund:

If filing on behalf of a claimant who died during 2001, the refund amount (line 15 of form K-40H) is prorated based on the decedent’s date of death. If the claimant was a homeowner, the taxes (line 11 of Form K-40H) are also prorated based on the decedent’s date of death.

Use the following steps to compute a Homestead refund on behalf of a decedent who died during 2002.

Step 1 Complete Form K-40H through line 10 using the line-by-line instructions that begins on page 15.

Step 2 Compute the Allowable Property Tax and/or Rent paid be decedent to date of death.

Owners: The allowable property tax is the percentage of taxes accrued to the decedent’s date of death. Multiply the total 2001 property taxes by the percentage from the table below for the month of the decedent’s death. Enter the result on line 11, Form K-40H. For example, if the claimant died in August, 2002, and the 2002 taxes were $635, the property tax paid to date of death to enter on line 11 is 3/12ths (.667) of $635, or $425 ($635 X .667 = $425).

Renters: Enter on line 2 of Schedule RNT only the rent paid by the claimant through the date of his or her death. Enter the total of all line 5 amounts from Schedule(s) RNT on line 12, Form K-40H.

Step 3 Complete line 13 (total property taxes and rent) and 14 (refund percentage) of Form K-40H.

Step 4 Multiply line 13, Form K-40H by line 14 of Form K-40H, and enter the result here:

Step 5 Enter the percentage from table below for the month of the decedent’s death:

Step 6 Multiply the answer from Step 4 by the percentage in Step 5 (same percentage used in Step 2 above for homeowners): Enter the result here and on line 15, Form K-40H.

Month % Month %

January .083 July .583

February .167 August .667

March .250 September .750

April .333 October .833

May .417 November .917

June .500 December 1.000

Required Enclosures for Dependent Claims

You must enclose a copy of the death certificate, funeral home notice, or obituary statement with a decedent's claim, AND one of the following:

• If the estate is being probated, a copy of the letters of administration.
• If the estate is not being probated, a completed Form RF-9, “Decedent Refund Claim”.

A decedent's claim should be signed by the surviving spouse, executor/executrix, or other authorized person.

Amending a Claim

If after mailing your claim you find that you have made an error that will affect the amount of your refund, file an amended Form K-40H. Wait until you have received your refund from the first claim before filing the amended claim. To file an amended claim, obtain another copy of Form K-40H, and mark the "amended" box located to the right of the country abbreviation. Enter the information on the claim as it should have been, and attach an explanation of the changes. If an additional refund is due, you will receive it in 10 to 12 weeks.

If the refund shown on the amended claim is LESS than the refund you received from the original claim, enclose a check or money order for the difference with your amended claim. Make your check payable to "Kansas Department of Revenue." Write "Homestead Repayment-Amended Claim" and your Social Security number on the face of your payment.

Homestead Refund Advancement Program
(Homeowners Only)

This optional program allows homeowners who received a 2001 Homestead refund to use their anticipated 2002 Homestead refund (advancement) to pay up to the first half of their 2002 property taxes. The amount of the advancement is based on the 2001 Homestead refund.

A letter showing the advancement amount available and Form ELG to complete with the county clerk are sent to eligible homeowners (those who have no outstanding tax liability to the department) in November for each year. If the claimant for whom the letter and for ELG are issued is deceased, Form ELG cannot be used. For more information about using this option for the first half of your property taxes, contact your county clerk or the Kansas Department of Revenue.

If you used this program for pay all or part of your first half 2002 property taxes, use the information and worksheet on page 19 to compute the remainder of the refund you will receive from the department once you have filed your Form K-40H, and if applicable, your Form K-40 for tax year 2001.

Fraudulent Claims

The Homestead Refund Program is designed to provide tax relief only to those that qualify. Fraudulent refund claims filed will be denied and may result in criminal prosecution.