I live in MO and work in KS. Why do I owe so much to MO (over 3k)?

[skarrgo]

seems very high for not even working there.

[SweetieJean]

Your income is taxable by both states.  Your home state of MO can tax all your income, regardless of where you earned it.  Your non-resident state, KS, can tax the income you earned by working in KS. You'll be able to take a credit on your home state MO return for the taxes paid to KS, so you won't be double-taxed.

Be sure to complete your non-resident KS return before you do your home state MO return, so that the credit flows properly.

[DanielV01 · Accepted solution]

Prepare the Kansas return first.  When you do, your Kansas income and tax should transfer over to your Missouri return (delete it and start over).  If it does not, then look for the screen entitled Taxes paid to Another State.  On that screen enter the amount of income you made in Kansas, and the amount of tax on that income.  The amount of tax is what was withheld from your W2, and then either subtract whatever Kansas refund you anticipate receiving or add the amount of additional Kansas tax you must pay.  That credit should significantly reduce the amount showing what you owe to MO.