Illinois Resident Working in Missouri

[Mtang78]

We live in Illinois and my spouse works in Missouri. I received Social Security benefits. Missouri is counting my Social Security benefits as income to be taxed. But I am not in Missouri and have never lived in Missouri. Is this correct?

Also, my spouse has retirement withdrawals that are being taxed in Missouri. But again, we do not live in Missouri and none of the retirement funds are located in Missouri and are not sourced from Missouri. So why is Missouri calculating taxes on that? Shouldn't the taxes only be calculated on what he actually earned from his Missouri employer?

[Hal_Al]

Q. Shouldn't the taxes only be calculated on what he actually earned from his Missouri employer?

A. Yes.

Q. So why is Missouri calculating taxes on all that?

A.  MO, like most other states, starts with you federal Adjusted Gross Income. But, it only appears like they are taxing all your income. TurboTax (TT) will calculate MO tax on ALL your income. But then it will apply a percentage (calculated on form MO-NRI based on the ratio of your MO income to the total.  TT will do all this when you indicate that you and your spouse are non residents. 

[Mtang78]

Missouri still taxed me $992 and I have never lived in Missouri and only work in Illinois. 

[Hal_Al]

You say "taxed me".  it's probably "taxed us".  Without knowing the exact numbers, $992 wouldn't be unusual for a full year's salary. It it still sounds like you're just not reading the forms right.  MO does not tax social security. IL will give you a credit for all or most of what you pay MO.

Nobody here can help you because we can see your forms. You should probably contact TT support. 

To contact TurboTax (TT) support:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/contact-turbotax/L2y9...

What is the TurboTax phone number? https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/turbotax-phone-number...

[Mtang78]

Near the end of the state input, a window opens that shows the breakdown per person on the taxes for thst state. It shows that Missouri is taxing me on $992 of wages. That is just on mine alone.

[Mike9241]

There is no reciprocity between the two states. You and your spouse will be taxed on the income you earned in Mo. Il will also tax that income but allow a credit for some or all of the those taxes by completing Schedule CR.  At one time to get the correct calculation of the credit, you had to complete the nonresident state first. I don't know if this is still a requirement, but it can't hurt.