Work in Missouri, live in Kansas

[talalasif]

Hi. I work in Missouri but live in Kansas. I have no income in Kansas. However, when I add my W2 form, it shows that I owe the state of Kansas more than the refund I am getting from Missouri. Please help me understand this issue. I have many colleagues in a similar situation. We were told by our employer that they have filed for Kansas income tax withholding at a single rate with no allowances.

[MichaelL1]

In TurboTax, make sure after the Federal return is complete, you do the non-resident state (Missouri) next and last the resident state of Kansas.

Your KS return will have a credit for taxes paid to another state.  Your resident state (KS) taxes you on all your income, regardless where earned, however will give you a credit for taxes paid on that income elsewhere so you are not doubled taxed.

It is still possible to owe some taxes to KS if you had no KS taxes withheld from your paychecks. Try this and post in comments if you need additional help. 

[talalasif]

At the total credit step, it is giving me a credit of zero. Is there a problem with my W2? Do I need to contact my employer?

[MichaelL1]

The W-2 should be OK, but the KS return should have a credit for some taxes to MO.  Go over the credit in the KS step again and that amount needs to be adjusted there.

[talalasif]

Can it be done manually at that step? It is giving the option to be manually adjusted.

[MichaelL1]

Yes it can be completed manually if it is not carrying it over.

[ronaldbossier]

tell your employer's HR you want to fill out federal and both states w4's to ensure proper withholding taxes.

[AmyC]

The MO tax rate is 0 -5.4% while KS goes up to 5.7%. This means that you could owe up to 0.3% to KS after the MO credit. You can have the employer take out a little MO or you can just make an estimated payment or two  to MO, here.