Part-Year residents dates of residency

[jimmy197]

I lived in Missouri at beggining of 2020. I moved from Missouri to Kansas around August 2020, then I moved back to Missouri at the end of December. What's the date of residency i should inpute for Missouri?

I tried to input January 1st 2020 as the start date of residency of Missouri, but it seems like turbotax will treat me as full year resident of Missouri instead of part-year if I use January 1st. I’m wondering if it’s ok to use December as my residency start date of Missouri.

[TomD8]

Since you lived more than 183 days in MO, you should file as a full-year resident of MO and as a non-resident of KS.  Kansas law allows someone who moved into KS during the tax year to file as either a resident or a non-resident.

To do this in TT, enter MO as your State of Residence, and indicate that you had Other State Income from KS.  Do not indicate that you lived in another state.  This will prompt the program to produce the correct tax forms for both states.

Complete the non-resident KS return first, before you do the home state MO return.  MO will give you a credit for the tax paid to KS on the portion of your income that is taxed by both states.

[jimmy197]

When i lived in KS, I commuted to work for a company located in Missouri. Also, i changed my vehicle title to kansas, does that mean i'm resident of KS and file part year resident for KS?

[TomD8]

https://www.ksrevenue.org/faqs-taxii.html#:~:text=Usually%20your%20state%20of%20legal,exempt%20from%....

[jimmy197]

Is the income i earned from Missouri when i lived in KS been regarded as KS source income as well?

Even though i lived in KS for few month, i don't have to indicate that i lived in another state? Would that be a problem? Baed on KS website, i can file nonresident for Kansas and resident for Missouri, right? Thank you!

[TomD8]

Yes, I interpret the KS website the same way.  It appears you can legitimately file as a non-resident of KS and a resident of MO.

KS taxes non-residents only on KS-source income.  Income is "sourced" based on where the work is actually performed.  Therefore your earnings from physically working in MO would not be taxable by KS if you file in KS as a non-resident.

I think if you're questioned you can say you relied on the information from KS' own website.

[jimmy197]

I saw KS define that Kansas source income includes all income earned while a Kansas resident; income from services performed in Kansas, Kansas lottery, pari-mutuel, casino and gambling winnings; income from real or tangible personal property located in Kansas; income from a business, trade, profession or occupation operating in Kansas, including partnerships and S corporations; income from a resident estate or trust, or from a nonresident estate or trust that received income from Kansas sources; and, unemployment compensation derived from sources in Kansas. (https://www.ksrevenue.org/pdf/ip20.pdf)

Since i'm filling nonresident for KS, the income i earned from Missouri is not kansas soruce income even though i lived in Kansas when i earned it? But if i filled KS resident, the income from Missouri will be a kansas source income, and i have to pay tax for that income. Am i understanding right?

[MaryK4]

Not exactly- income, in general, is sourced to the place it was earned or received in *.  

For state tax purposes, you report and pay tax (if required) as a NONRESIDENT on state source income.

For your RESIDENT state, you must report all income regardless of source.  To avoid double- tax on the same income, a resident state usually gives a credit for the tax paid to the nonresident state.

* Some income, like retirement, bank interest etc, is only state source income in the person's resident state.

@jimmy197

[jimmy197]

Does that mean the income i earned from Missouri is KS source income? The reason is that i earned it when i live in Kansas?

[TomD8]

Income you earn by working in MO is always MO-source income.  If you file your KS return as a KS resident, the MO-source income you earned during your period of KS residency becomes taxable by KS as well as by MO.  But you would be able to claim a credit on your KS return for taxes paid to MO on the income that is taxable by both states.

The KS web reference I gave you previously states that you can file your KS return either as a resident or as a non-resident, and suggests you run the figures each way to see which option is better for you.