Typically I am a KS resident who works in MO and whose usual work location is MO- and have always done both state returns with the bulk of taxes due to MO. My question is related to the COVID situation and being remote at home is Kansas JUST due to that in 2020. Company guidance is:
The Missouri Department of Revenue recently issued emergency rules regarding how certain employers were withholding income tax for employees who were working at a temporary location during the pandemic. The rules provide that employers who withheld income tax based upon an employee’s primary work location during the relief period (March 13, 2020 – December 31, 2020) are in compliance with their rules and regulations, if elected. Commerce will be making this election. As an employee whose primary work location (Missouri) may have been different than your temporary work location (Kansas) during 2020, this relief impacts you. Your 2020 Form W-2 will reflect your withholding based upon your primary work location (similar to prior years). Please consult your tax advisor for implications to your individual filing requirements related to these emergency rule. A copy of the emergency rule is attached.
Kansas says for "what state gets to tax the income of a telecommuter?"
State from where employee is telecommuting (i.e., employee’s home state) or employee’s
regular place of work (i.e., the employer’s home state) for period of March 13, 2020 to December 31, 2020
As of January 1, 2021, state from where employee is telecommuting (i.e., employee’s
home state)
To me this sounds like my employer guidance and Kansas are saying that for 2020 I can follow usual approach- and act as though all work was in Missouri. Is this problematic?
I worked it both ways- reporting as all MO income or apportioning 80% KS income and 20% MO. The last method was glitchy and led to that KS underpayment penalty. This is the first time I've used software instead of a tax pro and I guess I didn't pick a good year to make the change!
