K-48: Technology-Enabled Fiduciary Financial Institutions Credit Schedule (Revision 2024-07)

Who files this form

Schedule K-48 is used to claim the Technology Enabled Fiduciary Financial Institution credit.

A fiduciary financial institution may qualify for the credit for qualified charitable distributions made in connection with its activities during the tax year if it maintained its principal office in an economic growth zone during that year.

An economic growth zone is an incorporated community with no more than 5,000 people in one of the counties listed in the schedule’s general information.

If the institution is a pass-through entity and its credit exceeds its tax liability, a member or another party required to report that income on a Kansas income tax return may claim a share of the excess credit based on their percentage of distributive income.

What you'll need

Have these details available to complete the schedule:

• The tax year’s beginning and ending dates, taxpayer name as shown on the return, and Social Security number or EIN.
• For a partner, shareholder or member, the entity’s name and EIN.
• The incorporated community and county where contributions were made.
• The total qualified charitable distributions made during the tax year and your proportionate share percentage.
• Your prior year’s Schedule K-48, if you have a credit carryforward. Use the amount from line 8.
• Your Kansas tax liability after all other credits, for line 6.

Common mistakes

• Using the wrong percentage on line 2. Partners, shareholders and members of pass-through entities enter their proportionate share percentage. All other taxpayers enter 100%.
• Claiming more than the current-year limit. Line 7 must be the lesser of the available credit on line 5 or the Kansas tax liability after other credits on line 6.
• Skipping Part C. Complete it if line 7 is less than line 5. Enter the unused credit on line 8 for carryforward.
• Carrying credit forward too long. Credit cannot be carried forward beyond the fifth taxable year after the year it was first allowed.
• Transferring the credit. Credits allowed and earned cannot be sold, assigned, conveyed or transferred.

Questions people ask

What counts as a qualified charitable distribution?

Distributions of cash, beneficial interests or other assets to one or more qualified charities must have an aggregate value of at least 2.5% of the institution’s transactions originated during the taxable year. Transactions exclude renewals, extensions of credit and accruals associated with transactions made in a prior taxable year.

Where do I report the credit calculated on K-48?

Enter the amount from line 7 on the appropriate line of Form K-40, K-41, K-120 or K-130.

Can I use credit that exceeds my current tax liability later?

Yes. Unused credit may be carried forward against income or privilege tax liability, but not beyond the fifth taxable year after the year the credit was first allowed. Line 8 shows the amount to enter on line 4 of next year’s Schedule K-48.

Where can I get help with the schedule?

Contact the Kansas Department of Revenue’s Taxpayer Assistance Center at 785-368-8222. Additional copies of the schedule and other tax forms are available at ksrevenue.gov.

Official sources

• https://www.ksrevenue.gov/pdf/k-48.pdf