Where to input other state taxes paid into MO state tax return?

[Andrew N]

Hello, I have a situation where for part of the year, I lived in MO, but worked in IL. For the balance of the year, I lived and worked in TX. For the portion of time I lived in MO, worked in IL, I should be able to input the amount of IL state tax paid so I get a MO state income tax credit, but I can't seem to find this.

There is an input for me to add amount of income earned while living in MO (along with dates), but I can't find where to input the IL state income tax paid. Any help is very much appreciated! 

[MarilynG1]

If you indicated that you lived part of the year in Missouri, but earned income and paid tax to Illinois, you'll come to an adjustment screen in the Missouri State Interview.  If your W-2 showed IL tax paid, look for a screen titled 'Out of State Tax Credit Summary'.

If not, you can add your IL tax paid here.

Here's more info on How to File a Part-Year Resident Return.

@Andrew N 

[Andrew N]

Thanks for the help - I am using the web-based version and can't seem to find the screen (out of state tax credit summary) you show. Do I need to download the desktop version? 

[MarilynG1]

No, you should get the same screen in TurboTax Online.  Does your W-2 show that IL tax was paid?  If not, you won't see the 'Summary' but will get the screen to input the tax paid to another state.  The screen is towards the end of the Missouri interview.

@Andrew N 

[Andrew N]

Yes, my W-2 shows both taxes paid to IL and MO (MO is a lower amount, but still some paid). I think the problem is in this question below. If I chose the top one (part yr resident filing as resident), it prompts me for the "taxes paid to other states" question. However, it does not seem to let me specify how much I earned while a resident (it assume full year vs portion of the year). 

If I chose the bottom one (part yr resident filing as non-resident), it does not prompt me with the "taxes paid to other states" question. 

In either scenario, it is over-predicting how much I owe to MO. 

[DMarkM1]

Two items to check.  1.  In the "My Info" section the "Other state income" topic be sure you have indicated you earned income in another state and select IL.  2.  Complete your IL nonresident return first and take note of the income taxed and the IL tax for verification in the MO interview.  I suggest deleting the MO return and then completing IL nonresident return before starting the MO part-year return again.  

Once you begin your MO return again you will be able to allocate the correct income to MO.  After that you will get to the credits section and the IL information should be there for verification/editing as needed.     

[Andrew N]

Under the my information section, I stated two additional states -- IL and TX. I deleted my MO return, did my IL one return, and then completed the MO using the taxes paid to IL in the credits box. 

However, as stated previously, the MO return is still counting the income I earned for the second portion of the year while as resident of TX. So, my problem still isn't resolved. 

Other than trying this on the software version, is there anything else I can do?

[Tannerwalks]

I'm having the same issue where I lived in KS the entire year, but I don't get the "other state tax credit" page either (but I do get it in the KS page, where I file as resident).

The MO page as a non-resident or part-year resident doesn't contain the other state tax page at all.

[KrisD15]

The non-resident state does not give you a credit for taxes paid to another state.

If a taxpayer lives in only one state, say Kentucky, and earns 40,000 in Kentucky, they pay only Kentucky state tax on that 40,000.

If a taxpayer lives in one state, say Kentucky, but earns 40,000 in say Missouri, 

they would pay tax to Missouri on 40,000 income. They would also need to pay tax on 40,000 to Kentucky since most states tax you on income you earn in the state and also income you earn while a resident of the state. 

So, first you file a non-resident state return for Missouri and pay tax on 40,000. 

Next, you file a resident Kentucky state return.

When Kentucky goes to tax you on the 40,000, it says, "Wait, you already paid Missouri tax on that income, so we will give you a credit"

There is no credit on the Missouri return because the 40,000 had not yet been double-taxed. 

The amount WITHHELD on your paychecks should not be confused with what the state tax LIABILITY will be. The state tax liability is determined on your state tax return, then, if the withholding was more, you get a refund. If the withholding was less, you have a state tax balance due.  

@Tannerwalks 

[KrisD15]

Because you worked in Illinois while you lived in Missouri part year 2024 and then moved and worked in Texas, you must choose-

File as a part-year resident Missouri return, where all your 2024 yearly income will be taxed by Missouri and a credit for the tax paid to Illinois is available. 

This means the income from Texas will be taxed on the Missouri return with no state tax credit on the Texas income. 

or

File as a part-year non-resident and only pay tax on the income earned while you lived in Missouri (and worked in Illinois) with no tax credit available. 

This means only the income you earned in Illinois will be double-taxed, not the income from Texas. 

According to the state of Missouri:

"I was a resident of Missouri working in Kansas. In May, I moved to Texas. What forms are needed for filing my Missouri return?"

"You must complete Form MO-1040, along with either Form MO-CR (Missouri resident credit) or Form MO-NRI (Missouri income percentage), whichever is to your benefit. Remember, you cannot claim both. As a part-year Missouri resident, you may claim a resident credit for taxes paid to Kansas, leaving the income earned in Missouri and Texas as taxable income on your Missouri return; OR you may claim a Missouri income percentage, taxing you only on the Kansas income you earned while living in Missouri. Be sure to calculate your Missouri return using both Forms MO-CR and MO-NRI to determine which will result in the lowest Missouri tax liability."
 

@Andrew N