topic Re: Multiple State Tax in State tax filing

Multiple State Tax

girigiri — Tue, 09 Mar 2021 21:01:58 GMT

I moved from TX to KS on Sept 15th (Part-time resident in KS) & worked across state line in MO (Nonresident in Missouri). When I do taxes using TurboTax, for "Missouri taxable income" it is including income earned in TX (before Sept 15th) but adjusts resulting Tax liability by 40% (I guess to accommodate partial year income from MO) . But, when I file KS tax, it asks for "Income Taxed by MO" & should I only include W2 income from MO or Missouri Taxable income (which has TX income included that was earned before Sept 15th )

Re: Multiple State Tax

ThomasM125 — Tue, 09 Mar 2021 21:24:23 GMT

You should report the Missouri taxable income, which includes the Texas income, as it was taxed in Missouri.

Re: Multiple State Tax

girigiri — Tue, 09 Mar 2021 22:00:22 GMT

Hi Thomas:

After standard deduction...etc., MO is including my Texas income in the "Missouri Taxable Income" (Ex: $100) but during computation of Tax liability it is adjusting the tax liability by the % of Total income gotten from Missouri (Ex: If MO Tax liability is $10 and the amount of Missouri income compared to Federal AGI is 40% then it is asking to pay 0.4 x 10 = $4).

When I go to KS return on Turbo tax , it asks "Income Taxed by Missouri". Although MO computes tax on $100 but it is adjusting the liability computation to % of MO income as compared to Federal AGI. Hence, should I need to adjust Missouri taxable income by the % MO tax liability? Otherwise, I will be paying tax on Texas income obtained before Sept 15th which has no connectivity to Kasnas

Regards,

Giri

Re: Multiple State Tax

AmyC — Thu, 11 Mar 2021 22:51:52 GMT

Let's be sure MO and KS are right! You stated that MO includes your TX income. This can be interpreted 2 ways. Thomas thinks you meant you were living in TX but MO source income. I wonder if you were living and working in TX.

Your MO taxable income is defined as wages earned in MO. So, only the wages earned in MO should be on your MO return.

Your KY return will show a credit based on the wages earned in MO. MO must be completed before KY.