Remote Working Plus a Relocation

Forum|Forum|4 years ago
March 14, 2022
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I am struggling to figure out using TurboTax how I file my state income taxes...here is my situation:

Lived in Missouri January - August 2021

- Made small amount of income from Missouri based company in January; paid income taxes to MO

- Hired into a new company in Massachusetts and worked remotely from Missouri due to Covid (delayed relocation); paid income taxes to MA

Then in August, moved to Massachusetts and continued to make income in MA.

I know I have to file in both MO and MA...but I am trying to figure out how not to be double taxed on the same income. When I try to use MO-CR to get a credit for income taxes paid to MA, I am not clear on how to fill it out since I lived in MA mid Aug - December 2021.

Thanks for any help you can give. I called MO tax number and they say they don't know - what the heck!

Not A Product Question

Vanessa A

Level 15

Are you getting a refund from MA for the time you lived in MO? If so, you are not being double taxed.

Since you lived in both states you will owe taxes to both states, but the amount of your credit should only be the amount that you were taxed by both states while you lived in MO.

For instance, if you made $100,000 total. $40,000 from the first company, $60,000 from the second company. You started work for the MA company in July, then moved to MA in August, so you only have on month that you would have paid to MA while living in MO. If you had $3,000 withheld for MA total, but you are getting a refund of $500 for the time you lived in MO, then you would not be eligible for a credit from MO since you didn't pay any taxes to MA (you did, but you are getting it back) during the time you lived in MO.

Did you look at your forms to see if you are getting a refund or if something is wrong?

You can see your forms by clicking Tax Tools>>Tools>>View Tax Summary>>Preview My 1040. You can click on the state in this section and see if you are getting a refund from MA, which, again, would eliminate your credit for MO.

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klsmolkoAuthor

Level 2

According to everything I read, MA taxes on all income made by non-residents...so I worked for a MA company for 8 months while living in MO. There doesn't seem to be a way to reclaim from MA...I looked through forms. Thoughts?

klsmolkoAuthor

Level 2

To restart a state return go back to the beginning of the state section. On the first screen of the State section click Continue. To delete the state, click on the Trash Can next to the state that needs to be deleted. After you delete the State then click on Add a State Return and continue through the questions for that state return.

I guess the ultimate question is do I file as a Missouri part time resident that is resident or non-resident? That makes a difference in $$$ owed. I cannot figure out how to get TurboTax to adjust for income made only while living in MO