topic 2024 State Sourced income in State tax filing

2024 State Sourced income

scoutvictoria — Thu, 30 Jan 2025 16:28:32 GMT

In 2024, I lived in Missouri for 47 days. During this time, I worked hybrid (both at home and in office) for a company located in Kansas. After the 47-day period, I moved to Texas and began working fully remote for the same Kansas company.

Do I file a Part-year resident or Part-year non-resident return for Missouri?

Are my wages received after I moved to Texas still considered 'Kansas sourced'? After I moved to Texas I stopped withholding Kansas state taxes.

And how about the wages received while I lived in Missouri and worked part of the time in Kansas? Should I have been withholding both Kansas and Missouri taxes?

Thanks in advance for any insights you may have, they are greatly appreciated.

Re: 2024 State Sourced income

TomD8 — Thu, 30 Jan 2025 16:59:29 GMT

"Do I file a Part-year resident or Part-year non-resident return for Missouri?"

You're a part-year resident of MO. All your income as a MO resident is taxable by MO. And if you physically worked in KS during that time then you must also file a non-resident return for KS.'

After you moved to TX, any remote work you performed from a TX location is Texas-source income. Wages and salaries are sourced where the work is actually (physically) performed. Your income as a TX resident would be taxable by KS only if you physically performed work within KS. KS does not tax non-resident remote workers.

In the Personal Info section of TT, enter TX as your State of Residence. Indication that you also lived in MO and enter the date you began living in TX. Then indicate that you had Other State income from KS. Complete the non-resident KS return before you do the part-year MO return.

(Note: You should always complete your federal return before you do any state returns.)

Re: 2024 State Sourced income

scoutvictoria — Thu, 30 Jan 2025 16:46:22 GMT

Makes sense, I didn't know that filling out one state before the other on TT would make a difference. Thank you!

Re: 2024 State Sourced income

TomD8 — Thu, 30 Jan 2025 16:50:40 GMT

The reason for completing the non-resident state return first is that your resident state (at the time) will give you a credit for the tax paid to the non-resident state on the income taxed by both. In order for the program to "know" the amount of the credit, the non-resident state return must be completed first.

Re: 2024 State Sourced income

scoutvictoria — Thu, 30 Jan 2025 17:02:38 GMT

I understand.

So, my income that would be 'Kansas sourced' would be just the wages I earned while living in Missouri and working part of the time in Kansas. And then the tax on this 'KS' income should be the credit I get for 'MO'?

Re: 2024 State Sourced income

TomD8 — Thu, 30 Jan 2025 19:48:15 GMT

@scoutvictoria --

That is correct.