MISSION, Kan. -- Friday is typically known as pay-day, and if you work in Kansas, don’t be surprised this Friday if your paycheck is a bit smaller.
The new income tax increase that passed last month is now officially in effect.
This income tax hike is retroactive to the beginning of this year. So Kansas workers now owe extra taxes on all the money they made from January through June.
For example, if you bring in $70,000 per year, you're going to pay about $130 more a year in taxes-- meaning your paycheck will be about $5 less than your previous check if you get paid every two weeks.
The Kansas Legislature recently voted to raise income taxes and eliminate a tax exemption for farmers and business owners in an effort to balance the state budget.
The tax brackets went from two to three – so now everyone will be paying more.
Those who are self-employed will see the biggest tax increase.
According to H&R Block, a business owner making $70,000 will pay around $1,400 more a year in taxes. That’s because the LLC deduction is now gone.
Tax professionals say the best thing you can do is change your withholding status and quarterly estimated payments now, so you won’t owe a huge tax bill at the end of the year.
You will not have to pay any penalties or interest on the extra income taxes you owe from the first six months of this year as long as you pay it all by April.
To get all your questions answered, see your tax professional.