I am not filtering the incoming air to my compressor. I also have a Kobalt brand compressor, maybe a little larger tank. I ran out the tank's side fitting (using bushings to size down) with 3/4" copper pipe. Then up and at chest level soldered a T and put one air hose connector. Then went straight up the wall about 8'. Turned and ran about 30' to the front of the shop (making sure I had fall back to the compressor). Then down the wall to another T. Bottom of the T I extended and put a drain plug. Then came off the T to two fittings. One is for my 1/2" line for my 3/4" drive impact wrench. The other one has a filter assembly (stone filter type element and plastic water settling bowl). This arrangement seems to keep most of the condensation back in the compressor, which I open the bottom drain cock every so often to drain the tank. My blasting cabinet works good. But also, I have found I do not need full air pressure when using the cabinet. I have the air lever maybe half open.
I left the factory pressure valve assembly that is also at the top of the tank and if I want regulated air pressure I can use that. But since my spray gun has its own regulator, I rarely use the tank connector. Hope this helps.