It depends.
Those states each require a tax return. You will file as a resident for Kansas and a non-resident
for Missouri. Kansas will give you a
credit for the tax you pay in Missouri, but only up to the amount of Kansas tax
on the same income. So if you earned
50,000, and Missouri taxes you 2000 but Kansas only taxes you 1800, you will
receive a credit of 1800 on your Kansas taxes to bring it down to zero. You will not be reimbursed further. And if Kansas has a higher tax rate than
Missouri, you will have a balance you still owe to Kansas.
To avoid the double-taxation (or at least the need to fill out
two state returns), unfortunate about the only two real options are to either
move to Missouri (working and living in Missouri) or work in Kansas (living and
working in Kansas).
Having said that, TurboTax will make sure you are not over-taxed. In the Personal
Info Tab, make sure you answer “yes”
to the question if you worked in another state besides Kansas and select Missouri. Fill out your Missouri return first and
TurboTax will transfer all of the necessary information to your Kansas return
to calculate and apply the credit.
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