Hybrid work state tax filing MO

[nmyoung5]

I work for a company in Kansas City, MO and I am hybrid employee. This is the first time I am seeing the remote work item on the MO return. I know my WFH allocation % since I track and record my WFH days for the KCMO local tax, but I am not sure which wages from my return I should apply the % to in order to arrive at the income to add for the box.

Also I have been hybrid since covid, but have always just filled out my return like normal and then offset my full MO tax in my Kansas return since I have no income in KS, but live in KS. Can I still do that instead of trying to allocate the income and the tax offset?

[DianeW777]

It depends.  As you can see below, you are not required to file a Missouri (MO) tax return for any day you are not physically present in MO when you work. You should pay tax to MO on only the wages earned while you are physically working in MO. 

This means that on your KS return, you would enter the same amount to receive credit for taxes paid to another state to receive the credit. For any work done at home, this would be taxable only to KS and not MO. You could have a balance due to KS for those wages, but a potential refund from MO depending on your total withholding for MO.

The filing requirement for you is number 1 and 2 based on the wages earned in each capacity (at the office and work from home (WFH)). below according to the MO website.

1. I am a Missouri employer but I have nonresident employees who work in a state other than Missouri. A...
   • No. If a non-resident employee performs all of his or her services outside of Missouri, (WFH-work from home in KS) the wages paid to that employee are not subject to Missouri withholding.
2. Does Missouri tax remote workers?
   • Yes. This applies in the case of “remote work” where an employee is located in Missouri and performs services for the employer on a remote basis.

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