Remote Worker/Non Resident Tax Question

[aemc19791]

There is this help message I noticed while filling out my tax information on Turbo Tax:

If you performed remote work for a Missouri employer outside of Missouri during 2023, the portion of income earned while working outside Missouri is not taxable to Missouri. Amounts entered as remote work income will be subtracted from Missouri sourced wages transferred from your federal return.

So if I have two jobs: one in my resident state and a remote job with company based in Missouri, it seems like I would not be responsible for any tax to Missouri. However, Turbo Tax seems to be factoring in all my wages and so I am owing tax to Missouri. This seems to be an incorrect calculation. 

What can I do about this? Thank you.

[KrisD15]

If you are doing a non-resident Missouri State Tax return, allocate NO income to that state if all you have is wages for remote work. 

Unless Missouri tax was withheld, there is no reason that you would file a Missouri State tax return.

If you did have Missouri tax withheld, file a non-resident return, allocate NO income and get the tax refunded. 

If the program is allocating income to Missouri and all you have is wages for remote work and no other income attributed there, and you need to file for a refund, enter the income as a subtraction for the Missouri return. 

[aemc19791]

Thank you, Kris. This is very helpful. 

Turbo Tax keeps automatically pulling my federal income from my other job over to the Missouri non-resident return. 

How would I allocate "no income?"

Thank you.

[KrisD15]

Enter the amount of wages TurboTax is carrying over on the screen titled Remote Work for the Missouri portion of your returns.  

[beerymonte]

My question is similar though the earnings are non-employee income reported on a 1099-NEC paid to a personal LLC.  All services/work was done remotely.

Is this taxable in MO?

If no tax was withheld do I not need to file with MO?

If filing is required, how do I adjust the MO forms?

Thank you,

Monte

[TomD8]

@beerymonte --

If you were a full-year non-resident of MO for the tax year, and you never physically worked within MO, then your income from that work is not taxable by MO.  As long as no MO taxes were withheld from your pay, there is no need for you to file an MO tax return.

[beerymonte]

Thank you.  I appreciate your very timely response.

Monte

[PhilR2]

I am a remote teacher who teaches at a MO university online.  Do I need to file a MO tax return since some MO state taxes were withheld?

[TomD8]

@PhilR2 —

if you never physically worked within MO, then your work income is not taxable by MO.  But you’d have to file a non- resident MO tax return in order to obtain a refund of the withheld MO taxes.  On that return you’d show the withholding but you’d allocate zero income to MO.  

Your state tax obligations are determined by where you live and work, not by the location of your employer.