KeshaH
Expert Alumni

State tax filing

Thank you for providing your token. I've reviewed your MO return.

 

Your Missouri tax liability does not include any tax liability for your spouse. 

 

The Missouri return starts with Federal Adjusted Gross Income, which includes both you and your spouse's income. 

 

What can seem confusing is that Missouri has an income ratio that calculates each spouse's percentage of income compared to the total. 

 

For example, if your total income is $100,000, and you earned $60,000 and your spouse earned $40,000 - your income percentage is 60% while your spouse's income percentage is 40%. This percentage is used to calculate each spouse's Missouri taxable income after deductions. It's not what's used to calculate tax liability.  

 

After calculating each spouse's portion of Missouri taxable income, the form then calculates the tax liability for each of you separately as if you were full year residents. Then, your Missouri Income Percentage is applied based on how much of your income was earned in Missouri.

 

On your return, since none of your spouse's income was earned in Missouri, their Missouri income percentage is zero. When this percentage is applied their Missouri tax is reduced to zero. You will be able to verify this on the Missouri return on lines 29 - 36 when you print a copy.

 

@JayRockChalk