State taxes

[shark7801]

I live in Kansas but my company is in Missouri. I work from home 3 days a week and in the office the other 2. My company shows my Missouri taxable income as 40% of my total income which is correct (2 out of 5 days). However, they show my Kansas taxable income as my entire taxable income. It's like I'm taxed in Kansas all 5 days. Is this because I live there? Basically Kansas taxable income is equal to my federal taxable income. Is this right? It seems to me, my Kansas taxable income should be 60% (3 out of 5 days) of my total so that Kansas and Missouri taxable incomes added up would equal the federal taxable income. I emailed the payroll and they claim that is correct. I don't see how but I could be wrong, I'm not a tax lawyer which is why I'm posting this. Thank You

[TomD8 · Accepted solution]

Your company is doing it correctly.

Your resident state of Kansas can tax all your income, regardless of where you earn it.

Missouri can tax the income you earn from work you actually (physically) perform in Missouri.

You can claim a credit on your Kansas return for the taxes you pay to Missouri, so the end result is that you won't be double-taxed.

In TurboTax, be sure to complete your non-resident MO tax return before you do your home state KS return, so that the program can calculate and apply the credit correctly.

[NCperson]

@shark7801 - Turbo Tax will automatically calculate the credit @TomD8 is referring to (assuming you have TT complete both the MO and KS tax returns).