Working partially remotely from Kansas for a firm in Missouri

[girigiri]

Hi: 

I work for a company in Missouri but I am full time resident of Kansas.

Last year, I worked 60% of the total days remotely from my home in Kansas (across the state line).

With the above scenario, while filing Missouri tax return, should I put 60% of the total wages shown in W2 as the income from Missouri?

Regards,

Giri

[DawnC]

For most people, what matters is where you earned the income—not where your employer is located.   Kansas will tax all of your income as it is your resident state.   On your nonresident MO return, you need to allocate the 40% that you actually worked in the state of Missouri.    Kansas will give you a credit for taxes paid to MO on your resident return.    You owe tax to MO only for the work done while you were physically in the state of MO.   Any work you did at home, in Kansas is Kansas-sourced, not Missouri-sourced.  

Out of State Employers

[girigiri]

Hi Dawn:

Thank you for your input and suggestion. I will do so.

In my non-resident Missouri tax return, I will allocate 40% of the total W2 to Missouri (which was earned by physically being in Missouri).

While filing Kansas return (which is my resident state), I will show 100% of W2 and take credit for Taxes paid to Missouri.

Hopefully, I have understood your input correctly. Let me know if otherwise.

Regards,

Giri

[DawnC]

You understand perfectly and you are welcome!

[girigiri]

Hi Dawn:

Again, thank you for your clarification input and help.

Regards,

Giri

[girigiri]

Hi Dawn:

I saw in my W2  when I add the amount of my State wages, tips, etc. shown in Box 16 of W2 issued by my employer for the state of Missouri and for the state of Kansas (Where I am resident) the total amount is more than the amount shown in Box 1 (Wages, tips, other comp.). Hence, wanted to know if you have any insight on it.

Regards,

Giri

[JamesG1]

W-2 box 16 reporting state wages may be larger than box 1 wages when the state listed in box 15 taxes income that the IRS does not tax.  If you have access to your last paystub of 2023, you may be able to re-construct the box 16 state wages number.

@girigiri    [Edited 02/27/24 | 6:14 am PST]

[girigiri]

Hi Dawn:

Thank you for your input.

I did not know that Kansas considers contribution to 401k Taxable and includes in Box 16.

Does Missouri also includes 401k contribution in Box 16 (As part of State Wages)?

Regards,

Giri

[KrisD15]

To clarify, is the amount in Box 16 (state tax) the same as the amount in Box 3 of your W-2?