1099-NEC being taxed by both states?

[jcozn2]

My wife and I are both full time residents of Kansas.  My W2 job is full time in Kansas and all state tax paid to Kansas.  My wife had a W2 job full time in Kansas but moved to a new job in Missouri in October 2024.  I understand we will have some taxes paid to Missouri for the income earned by her in Missouri, and I understand that those state taxes paid to Missouri are offset in Kansas so that we are not "double paying" state income tax on that Missouri income.

What I am having trouble understanding is how 1099-NEC payments play into this.  My wife does some social media and freelance work for various skin care companies.  The work is all completed remotely in Kansas, and thus to my knowledge should only be taxed by Kansas.  However, when I put in those 1099-NEC's to Turbotax, the program is allocating state tax payments to both Kansas and Missouri, despite the fact that I enter Box 6 and Box 7 of the 1099-NEC form stating that the income should be taxed in Kansas.  Is there any way around this in the program?  What am I missing here? 

[AmyC]

Q1. Since you are selecting KS tax only, the program should be conforming. A full or corrupted cache can cause problems in TurboTax, sometimes you need to clear your cache (that is, remove these temporary files).

Online version:

1. Delete the form/ worksheet- if possible, see How to Delete  
2. Log out of your return and try one or more of the following:
   • Don't use Internet Explorer.
   • Clear cache and cookies,
   • Sign in using a different browser.
   • Sign in using a different device.
3. Log back into your return.
   • Enter the information again.

Desktop version: 

1. Delete the form
2. Save your return while closing the program. Let is sit for a little bit.
3. Update the program
4. Open
5. Enter the information again.

Q2. Many states tax income sourced from their state. Businesses that operate in more than one state may have to file multiple state returns. You will need to check the state filing requirements for each state where income is received.

For example: If you wife worked for a company in PA and made $50, you would need to file a return - since they have a $33 filing requirement.

Kansas will offer credit on the income so it is not double taxed.