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Level 1

Working in MO and staying in KS. How to avoid double tax ?

 
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Level 12

Working in MO and staying in KS. How to avoid double tax ?

It depends.  Those states each require a tax return.  You will file as a resident for Kansas and a non-resident for Missouri.  Kansas will give you a credit for the tax you pay in Missouri, but only up to the amount of Kansas tax on the same income.  So if you earned 50,000, and Missouri taxes you 2000 but Kansas only taxes you 1800, you will receive a credit of 1800 on your Kansas taxes to bring it down to zero.  You will not be reimbursed further.  And if Kansas has a higher tax rate than Missouri, you will have a balance you still owe to Kansas.

To avoid the double-taxation (or at least the need to fill out two state returns), unfortunate about the only two real options are to either move to Missouri (working and living in Missouri) or work in Kansas (living and working in Kansas). 

Having said that, TurboTax will make sure you are not over-taxed.  In the Personal Info Tab, make sure you answer “yes” to the question if you worked in another state besides Kansas and select Missouri.  Fill out your Missouri return first and TurboTax will transfer all of the necessary information to your Kansas return to calculate and apply the credit.

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Level 12

Working in MO and staying in KS. How to avoid double tax ?

It depends.  Those states each require a tax return.  You will file as a resident for Kansas and a non-resident for Missouri.  Kansas will give you a credit for the tax you pay in Missouri, but only up to the amount of Kansas tax on the same income.  So if you earned 50,000, and Missouri taxes you 2000 but Kansas only taxes you 1800, you will receive a credit of 1800 on your Kansas taxes to bring it down to zero.  You will not be reimbursed further.  And if Kansas has a higher tax rate than Missouri, you will have a balance you still owe to Kansas.

To avoid the double-taxation (or at least the need to fill out two state returns), unfortunate about the only two real options are to either move to Missouri (working and living in Missouri) or work in Kansas (living and working in Kansas). 

Having said that, TurboTax will make sure you are not over-taxed.  In the Personal Info Tab, make sure you answer “yes” to the question if you worked in another state besides Kansas and select Missouri.  Fill out your Missouri return first and TurboTax will transfer all of the necessary information to your Kansas return to calculate and apply the credit.

Level 1

Working in MO and staying in KS. How to avoid double tax ?

at what point in the turbo tax process do i see the credit for my KS balance due?