National Guard and Reserve Employer Credit (K-74)
Published on: Mar 3, 2016
Transcripts - National Guard and Reserve Employer Credit (K-74)
NATIONAL GUARD & RESERVE EMPLOYER CREDIT
For the taxable year beginning _________________ , 20____ ; ending _________________ , 20____ .
Name of taxpayer (as shown on return) Social Security Number or Employer ID Number (EIN)
If partner, shareholder or member, enter name of partnership, S corporation, LLC or LLP Employer ID Number (EIN)
PART A – COMPUTATION OF CREDIT
This credit is being claimed for employing ____________________________ , Social Security Number ______________________
1. Total amount of salary or compensation you paid this tax year for employing a member of the Kansas
Army or Air National Guard who was federally activated and deployed on or after August 7, 1990, that
you did not employ prior to such activation and deployment and who was currently unemployed at the
time you employed them. 1. _______________
2. Maximum percentage allowed by law. 2. _______________
3. Maximum credit for this tax year. Multiply line 1 by line 2. 3. _______________
4. Credit limitation. 4. _______________
5. Maximum credit allowed. Enter the lesser of line 3 or line 4. 5. _______________
6. Proportionate share percentage (see instructions). 6. _______________
7. Your share of the credit for employing this member. Multiply line 5 by line 6. 7. _______________
PART B – COMPUTATION OF TOTAL CREDIT CLAIMED THIS TAX YEAR
8. Amount of available carry forward from the prior year’s Schedule K-74. 8. _______________
9. Total credit available. Add lines 7 and 8. 9. _______________
10. Amount of tax liability for current taxable year after all previously claimed credits. 10. _______________
11. Amount of credit allowable this tax year. nter the lesser of line 9 or line 10. Also enter this amount
E 11. _______________
on the appropriate line of Form K-40, K-41 or Form K-120.
If line 11 is less than line 9, complete PART C.
PART C – COMPUTATION OF CREDIT CARRY FORWARD
12. Amount of credit to carry forward to next year’s Schedule K-74 (subtract line 11 from line 9). 12. _______________
INSTRUCTIONS FOR SCHEDULE K-74
GENERAL INSTRUCTIONS LINE 3 – Multiply line 1 by line 2 and enter the result. This is
the maximum credit for this tax year.
K.S.A. 79-32,244 provides that for years 2006, 2007 and LINE 4 – Credit limitation set by law ($7,000). Make no
2008, a 25% Kansas income tax credit for employing a
entry on this line.
member of the Kansas army and air national guard or a
LINE 5 – Maximum credit allowed. Enter the lesser of line 3
member of a Kansas unit of the reserved forces of the United
of line 4.
States who was federally activated and deployed on or after
August 7, 1990. The credit is 25% of the amount paid as LINE 6 – Partners, shareholders or members: Enter the
salary or compensation, not to exceed $7,000 for each percentage that represents your proportionate share in
member employed. This credit is further limited to salary or the partnership, S corporation, LLC or LLP. All other
compensation paid for one (1) year for each member taxpayers: Enter 100%.
LINE 7 – Multiply line 5 by line 6 and enter the result. This is
your share of the total credit for the amount invested
To qualify for this credit the following criteria must be met:
1) an employer must employ a member of the Kansas
army and air national guard or a member of a Kansas unit of PART B — COMPUTATION OF TOTAL CREDIT CLAIMED
the reserved forces of the United States who was federally THIS TAX YEAR
activated and deployed on or after August 7, 1990, and
LINE 8 – Enter the carry forward amounts available from
2) an employer must NOT have employed such said
prior year’s K-74 schedules and enclose a copy of those
member prior to such activation and deployment, and
3) the member must have been unemployed at the time
the employer (who is claiming this credit) employed said LINE 9 – Add lines 7 and 8. Enter the result.
LINE 10 – Enter the total Kansas tax liability for the current
tax year after all previously claimed credits.
The credit allowed shall not exceed the amount of the tax
LINE 11 – Enter the lessor of line 9 or line 10. Enter this
imposed under the Kansas income tax act, reduced by the
amount on the appropriate line of Forms K-40, K-41 or
sum of any other credits. If the amount of the credit allowed
by this section exceeds the taxpayers’ income tax liability
imposed by the Kansas income tax act for such taxable year,
If line 11 is less than line 9, complete PART C.
such excess may be carried over for credit in the same
PART C —COMPUTATION OF CARRY FORWARD CREDIT
manner in the succeeding taxable years until the total amount
of such credit is used.
LINE 12 – Subtract line 11 from line 9. Enter the result. This
amount cannot be less than zero. Enter this amount on
You must complete a separate Schedule K-74
next year’s Schedule K-74.
for each employee.
SPECIFIC LINE INSTRUCTIONS
For information and assistance in completing this schedule
PART A - COMPUTATION OF CREDIT
contact the Kansas Department of Revenue:
LINE 1 – Enter total amount of salary or compensation you Taxpayer Assistance Center
Docking State Office Building
paid this tax year for employing a member of the Kansas
915 SW Harrison St., 1st Floor
Army or Air National Guard who was federally activated
Topeka, KS 66625-2007
and deployed on or after August 7, 1990, that you did
not employ prior to such activation and deployment and Phone: (785) 368-8222
who was currently unemployed at the time you Hearing Impaired TTY: (785) 296-6461
Kansas tax forms are available from our office or on our
LINE 2 – The maximum percentage (25%) allowed by law.
web site: www.ksrevenue.org
Make no entry on this line.