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KSEVANS26
Level 2

Live in Kansas and all income from Missouri

I live in Kansas and 100% of my income is from Missouri. How do I compute the 'credit paid to another state' in the K40 if there is zero income from Kansas? Do I need to pay the Kansas bill or get credit for the MO tax bill? the MO tax bill is larger than the KS tax bill. Thanks

3 Replies
BillM223
Expert Alumni

Live in Kansas and all income from Missouri

You are filing a nonresident return for Missouri and a resident return for Kansas, right?

 

Did you enter the Missouri return first?
 

When you enter the nonresident state first, then when the tax for that state is calculated, it is carried back to the resident state as a credit (in most cases - it does in this case).

 

Did the Missouri tax appear as a credit on line 13 ("Credit for taxes paid to other states") on your K-40? Then this is correct.

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KSEVANS26
Level 2

Live in Kansas and all income from Missouri

Thanks for the reply, here are my responses.

You are filing a nonresident return for Missouri and a resident return for Kansas, right? Correct

 

Did you enter the Missouri return first? Correct
 

When you enter the nonresident state first, then when the tax for that state is calculated, it is carried back to the resident state as a credit (in most cases - it does in this case).  The Missouri tax bill is zero because the amount of income was less than the standard deduction.

 

Did the Missouri tax appear as a credit on line 13 ("Credit for taxes paid to other states") on your K-40? Then this is correct. The credit is zero since there was no tax bill for Missouri due to the generous standard deduction. So there is a refund of taxes in MO but have to pay taxes in KS since there was no offset or credit.

BillM223
Expert Alumni

Live in Kansas and all income from Missouri

Your second response sounds all correct.

 

"So there is a refund of taxes in MO but have to pay taxes in KS since there was no offset or credit."

 

If there were no tax due in MO, then this is exactly correct.

 

But I am puzzled by something you said in the first post - "the MO tax bill is larger than the KS tax bill."

 

If the MO tax was zero, how was it larger than the KS tax? Or did you mean something else?

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