Your W-2 may be incorrect based the Missouri DOR information you received. The following information will show you how your tax returns should have been completed for the full amount you are entitled to receive as a refund.
The full amount of your wages must be reported on both state returns. The following explanation should provide the information necessary for the Missouri DOR to understand. All income is required to be reported to both the nonresident state of Kansas (KS) and your resident state of MO. Your resident state (MO), will allow a credit for other state taxes when your return is/was filed.
- Filing Form MO-CR
- The information below may also help with understanding these rules.
State Returns - Your resident state requires you to include all worldwide income. Assume both states require income tax returns to be filed:
- Report the income on each state return that is from the nonresident state
- Report it on your resident state and receive credit for taxes paid to another state.
Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state. Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
In most cases complete your nonresident state first.
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