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jwsv
Level 2

My wife and I live in Illinois, I work in Missouri. Why is my wife's pay being used to calculate the taxes we owe in Missouri when none of her wages were earned there?

Neither of us live in Missouri and my Job is the only Missouri income that we have.
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1 Best answer

Accepted Solutions
KathrynG3
Expert Alumni

My wife and I live in Illinois, I work in Missouri. Why is my wife's pay being used to calculate the taxes we owe in Missouri when none of her wages were earned there?

It depends on how the W-2s have been reported. Be sure that the income entered is identified to the proper state. Missouri only taxes Missouri source income. 

 

Secondly, enter Missouri first, then Illinois. If you did not enter the states in this sequence, delete them both and re-add them. 

 

If the states were entered out of order, return to the state interview, delete both states, and re-enter them.

  • In TurboTax Online:
    • At the state interview, click Delete and answer Yes.
    • Repeat this for the second state.
    • Click Add Another State in this same section and enter Missouri. Complete the interview.
    • Return to the State section and select Add Another State for Illinois and complete the interview.
  • In TurboTax CD/Download:
    • Go to File in the main menu and
    • Scroll to Remove State Return and select Remove
    • On the STATE TAXES tab, select Continue.
    • Select Missouri in the Other installed states  section and Add. Complete the interview.
    • Select the STATE TAXES tab and Continue.
    • Select Illinois in the Other installed states section and Add.

Proving Missouri will not tax a percentage of all income, but only Missouri sourced income, see: Missouri Department of Revenue Nonresidents and Residents with Other State Income:

As a nonresident, you may be able to claim a Missouri income percentage, reducing your Missouri tax liability by taxing you only on your Missouri source income. 

 

For more information, see: How do I file a nonresident state return?

View solution in original post

1 Reply
KathrynG3
Expert Alumni

My wife and I live in Illinois, I work in Missouri. Why is my wife's pay being used to calculate the taxes we owe in Missouri when none of her wages were earned there?

It depends on how the W-2s have been reported. Be sure that the income entered is identified to the proper state. Missouri only taxes Missouri source income. 

 

Secondly, enter Missouri first, then Illinois. If you did not enter the states in this sequence, delete them both and re-add them. 

 

If the states were entered out of order, return to the state interview, delete both states, and re-enter them.

  • In TurboTax Online:
    • At the state interview, click Delete and answer Yes.
    • Repeat this for the second state.
    • Click Add Another State in this same section and enter Missouri. Complete the interview.
    • Return to the State section and select Add Another State for Illinois and complete the interview.
  • In TurboTax CD/Download:
    • Go to File in the main menu and
    • Scroll to Remove State Return and select Remove
    • On the STATE TAXES tab, select Continue.
    • Select Missouri in the Other installed states  section and Add. Complete the interview.
    • Select the STATE TAXES tab and Continue.
    • Select Illinois in the Other installed states section and Add.

Proving Missouri will not tax a percentage of all income, but only Missouri sourced income, see: Missouri Department of Revenue Nonresidents and Residents with Other State Income:

As a nonresident, you may be able to claim a Missouri income percentage, reducing your Missouri tax liability by taxing you only on your Missouri source income. 

 

For more information, see: How do I file a nonresident state return?

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