My son is a resident to IL but worked in MO for 2months.They took our MOtax and IL is wanting to tax him. MO is not giving all Mo taxes back.Is that right?

[ggliverette]

My son is a resident in Illinois but worked in MO for 2 months last year.  When I do his taxes, IL wants to charge him taxes for that income.  However, MO is also charging him and he is not getting it all back from MO.  Out of $204 deducted in MO taxes, they are giving him 30 back.  While IL is charging him $274.00.  I feel like he is being double taxed on the same money.

[ggliverette]

I am using Turbotax Home & Business.  I don't have a black navigation panel on the left of the screen.

[DianeW]

@ggliverette You should use the "Personal Info" tab for the desktop version.

[ggliverette]

I did that and now Turbotax wants me to buy the MO state tax.  Is this something I can do on Paper via downloading the form from the IRS.  Or does Turbotax have to read both states in the program in order to get the correct refund?  Sorry, It's so much easier dealing with just one state.  UGH

[DianeW]

@ggliverette You can use the forms from the MO site.  Here is the link to get started with forms and instructions. <a rel="nofollow" target="_blank" href="http://dor.mo.gov/personal/nonresident/">http://dor.mo.gov/personal/nonresident/</a>

[DianeW · Accepted solution]

Yes, you are correct. Please use the instructions below to  help you get the correct amount of tax for each return.

Prepare the nonresident state first and then your resident state.  First, use the steps here to add the nonresident state to your file.

1. Select "My Info" in the black navigation panel on the left (Personal Info tab for desktop)
2. Edit  or by selecting the pencil next to your address
3. For a second state only: Edit by selecting the pencil next to Other state income, select MO
4. Click the image attached to enlarge and view for assistance.
   

In your case you would have a "credit for taxes paid to another state" for the income reported on the return for MO.

Resident State:  All income worldwide is required to be reported on your resident state return.  Any money that is also taxed in a nonresident state is eligible for the "credit for taxes paid to another state" when you complete your resident state return.  Your resident state does not want you to pay tax twice on the same income.

Nonresident State: Any money earned in a nonresident state is required to be reported on that state tax return (with the exception of reciprocal agreements which does not apply in this case).  The nonresident state will tax any income earned from that state.