What if my husband worked in MO for 2016 and a study abroad professor for MI for 2 months in the summer? He had tax withheld in MI & now MO is trying to tax us as well.

[MichaelMc · Accepted solution]

As your state of residence, Missouri is going to exercise its right to tax all of your earnings, regardless of source. The good news is that most states offer a tax credit to offset a significant portion of the burden of being taxed by your nonresident state.

Your husband will want to file a nonresident tax return based only on his Michigan earnings. After completing that, then prepare your Missouri tax return. TurboTax will pass information about the Michigan earnings to the Missouri return. You may need to make one or more entries on an income allocation worksheet, to be certain that income is attributed to the correct states. You will eventually see a credit, based on the Michigan tax, reducing your Missouri taxes.