Kansas City Return Earnings Tax - if 1% local tax was withheld from income, are you supposed to still file this RD-108?

My husband works at a school, which I am assuming is an unincorporated business. By definition, he should pay the earnings tax, but is that the same as the 1% already withheld on his W2?
ErnieS0
Expert Alumni

State tax filing

You do not have to file a Kansas City Earnings Tax form if the proper amount (1%) was withheld from your husband’s pay. Kansas City says:

 

• Every resident individual who derives income from salaries, wages, commissions or other compensation for which the tax has not been withheld by the resident's employer(s). If your income is derived from the ownership of a business or other self-employment, you MUST file a Profits Return - Earnings Tax (Form RD-108).

 

• Every nonresident individual working or providing services within the city who derives income from salaries, wages, commissions or other compensation from which the tax has not been withheld by the employer.

 

• Exception: Where city earnings tax has been withheld from an individual's entire taxable earnings by his or her employer(s), no further payment is due and a return does not need to be filed.

 

GENERAL INSTRUCTIONS FOR COMPLETING FORM RD-109

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State tax filing

How do I know if my emoployer withheld the 1% Earnings Tax?  Will it show on my W2's? 

ErnieS0
Expert Alumni

State tax filing

@amberw0822 Yes. If your employer withheld Kansas City earning tax, it will be on Boxes 18-20 of Form W-2.

  • Box 20 will have a Locality name, which may be K.C. or Kansas City.
  • Box 18 will have income subject to KC earnings tax and
  • Box 19 will have the tax withheld. The K.C. rate is 1%.

If your employer did not withhold KC earnings tax and you have to pay it (which is unusual), you can prepare Form RD-109 in the Missouri section of TurboTax.

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