Live in Illinois, work in Missouri, have been remote since March 17, 2020

[Anonymous]

As the subject states above...

I noticed when using online TurboTax this year, it specifically asks how much of MO income was earned while working remotely.  For all of 2021/2022 I have been fully remote. When did this option become available for not having to pay taxes on remote work in MO?  I would like to amend my prior years if this process started in say 2020. Does this option require the remote work be full time?  2020 I was in office until March 17 and starting this year, I will be in the office 2/3 per month.

Additionally, am I reading this correctly that if I didn't work at all in an office located in Missouri, I get ALL my MO taxes back.

[TomD8 · Accepted solution]

MO does not tax non-resident remote workers.  If you never physically worked in MO in 2022, your income is not taxed by MO.  It is of course fully taxable by your home state of IL.

If your employer mistakenly withheld MO income tax, file a non-resident MO tax return.  On that return enter the MO withholding, but allocate zero income to MO.

If your employer is not withholding IL taxes for you, you'll have to make quarterly estimated tax payments to IL to avoid penalties.

[Anonymous]

I have done the non resident return for MO for almost 18 years, but since Covid I have been remote and will continue to be almost 100% remote going forward.  Luckily my wife works in Illinois so her paycheck handles the Illinois tax as I have her have extra removed each check.

[TomD8]

"...almost 100% remote..."

MO can still tax you as a non-resident on any income from work actually performed within MO.

[DaveF1006]

According to the State of Missouri on their website, anytime an employee is performing work for a Missouri employer, the wages earned are subject to Missouri withholding. So you will need to file a Missouri non-resident return to get that money back. Also if your wages are more than $600, you will need to file a MO non-resident return regardless if taxes were withheld or not. 

The good news is this MO link states that if  a nonresident employee performs all of his or her services outside of Missouri, the wages paid to that employee are not subject to Missouri withholding.  Please view this Missouri link for further details.