When filing the MO-CR form, should I include the local income tax I paid to Philadelphia as well as the state income tax I paid to the state of Pennsylvania?

[dominic-rocco-jr]

I moved from Missouri to Philadelphia, PA this past year. While filing my MO state return form MO-CR it states "Credit for Income Taxes Paid To Other States or Political Subdivisions". Does the local income tax I paid to Philadelphia (which shows up on my W-2) count as income taxes paid to a Political Subdivision? If I can get a credit for this local income tax paid, do I need to file it on the same MO-CR form I used for the PA state income tax credit or do I need to file a separate form?

[DanielV01 · Accepted solution]

Yes, if this is how you are choosing to file your Missouri part-year return.  Your part-year return in MO can be done one of two ways:  you may file all of your income as if it were taxable in Missouri as a resident, and then take a percentage for the amount of the tax based on the amount of income you actually earned there, or you may claim a credit for the taxes you paid to the state and political subdivisions for the income you earned there once you moved.  Since you are using method 2, the credit, you may claim the taxes paid to PA (which is the amount withheld minus the refund) as well as the amount paid to Philadelphia (amount withheld minus the refund, if any).

Here is a website that describes this treatment, as well as links to assist you:  http://dor.mo.gov/faq/personal/nonresident.php

[dominic-rocco-jr]

When filing the MO-CR do you include the PA taxes and Philadelphia taxes on the same form or separate forms?

[DanielV01]

Sorry, I was away.  Combine them on the same form and same line, but remember to subtract any refund you receive from PA or Philly.