I currently live in Missouri and work in Kansas. Kansas taxes were deducted from my paychecks. I live less than 1 mile from the state line. Why am I paying Missouri taxes if I am not working there?

[katevans87]

Additional info:  I was contributing a small amount out of my paychecks to MO in anticipation of being taxed, but the amount owed seems astronomical for not working there.

[TomD8]

Your income is taxable by both states.  Your home state of MO can tax all your income, regardless of where you earned it.  Your non-resident state, KS, can tax the income you earned by working in KS.

You'll be able to take a credit on your home state MO return for the taxes paid to KS, so you won't be double-taxed.

>>Be sure to complete your non-resident KS return before you do your home state MO return, so that the credit flows properly.

[pacmann901]

So on each check I will pay state taxes for both states? If I earn $51K a year how much will I receive on my biweekly paycheck. I ask, because now I might have to cancel my lease.

[fanfare]

looks like Kansas is one of those states that don't have reciprocity deals with other states.

Talk to your HR person at work.