Multiple State tax calculation issue

[ericasjourney19]

Moved from Maryland to Missouri at the start of December. Was a full year resident in MD for several years and never an issue. I received two W2s from my company due to the move (odd but ok); one for just Maryland with the full details populated and one for Missouri with ONLY the state wages/tax, identifiable information and my retirement plan but no data in the federal wage/tax section. I tried both combining into a single entry on the form and adding a second and received the same results - that I owe Missouri almost $6000 with only $10310 in wages for that month. This is an obscene tax rate and according to IRS, I should be taxed at 5.40% for MO and 5% for MD. 

I struggle to believe that my tax rate for MO is at the near 60% that it is claiming it to be. Anyone encounter this or should I contact my payroll dept since the W2 is completely blank on the federal section? Want to avoid the added expense of a tax company if possible but not opposed if needed. 

[SteamTrain]

You enter the W-2 as one W-2 in the software, but in boxes 15-16-17, there will be two lines, one for MD and another line for MO.

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1) Ignore the state sections balances due, until you have absolutely everything entered in the Federal part...every scrap of income and every deduction/credit.    The state balances due during this phase may be warped....because you have yet to do the Part-year income allocations for each state during their interview sections.

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2)  After #1 is done, work thru the MD part-year tax questions...and you will "allocate" what sub-portion of the Federal income was actually earned while you were living in MD.  (problem is, that right now, not all of the MD forms seem to be available, so maybe wait until late Feb to continue thru #2 and #3)

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3) After the MD part-year is done....MO does things a bit differently.  For a part-year resident, MO allows you to either:

......3 a) File as a full-year MO resident (which taxes ALL your yearly income), BUT then you can take a credit for the taxes you had to pay to MD  (which is why MD has to be done first).   or

......3b) File as a full year non-resident of MO, but then identify what sub-part of your Federal income was earned after you became a MO resident...thus only the MO wages, any interest, dividends, and Cap Gains too during the end of the year.  (No credit is n taken for taxes paid to MD, because you are specifically identifying MO-only income this way)

.................MO lets your file either way 3a) or 3b)...whichever you think is best.  I "think" 3b) might be easier if you were only in MO for a short time...but I can't know the entirety of your situation.

Not all of the MO tax forms needed are ready either, so again...maybe late Feb to continue with the State sections.

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