Employer took out taxes for resident state MO instead of work state KS

[17699724081]

Employer took out taxes for resident state MO instead of work state KS.  I think I need to FIRST prepare the MO resident return so I can get credit for the MO taxes incorrectly paid...is that right?  

Then do I prepare the KS non resident return so taxes due for KS can be determined?

Do I report all income on BOTH the MO and the KS return so those amounts are the same?  Just don't want to get taxed in both states and make sure I get the credit for paying taxes in MO.  MO and KS do not have reciprocity agreement.

[AmyC · Accepted solution]

Follow these steps since these states are neither reciprocal nor reverse credit states:

1. You will prepare the KS nonresident return with your KS income. You will owe tax on the income earned in KS.
2. Prepare the MO resident return and include  all income 
3. Complete the MO- CR for credit from the KS return. The credit will be the lower of the state tax liabilities on the same taxable income. The difference in tax rate along with differences in how the taxable income is calculated will also affect the credit allowed.

You will pay KS and get a refund from MO. If you live in Kansas City, MO - your employer may not have withheld the 1% earnings tax.