KS Resident, MO State Tax and Kansas City Earnings Tax Credit

[Canuck66]

So I'm a KS full time resident filing as joint married (both same living in KS and working for MO based companies), hence MO state taxes and Kansas City earnings tax as well. As always, you get credit for MO taxes paid as a resident of KS, but when I'm filling in the Kansas State forms the “Double Taxed Income” pulled in from W2's agrees (matches total of Box 16 wages when added together) but the number it pulls in for “Tax Paid to Missouri (including its political subdivisions if any) on Double Taxed Income” comes in at $10,240, and if you add up Box 17 for both W2's it comes to $10,337. So wondering why there is a difference. Secondly I see no place where you can get credit for the Kansas City earnings tax (which is Box 19 on the W2's). Not sure if I need to override what Turbo Tax brings in from MO State tax form ($10,240) and replace with sum of all Box 17 and Box 19 for both W2's. It does not affect Federal taxes but does affect the credit back for KS State tax. Probably a simple reason but can't find the answer. Appreciate the help!

[RalphH1 · Accepted solution]

Are you possibly getting a $97 refund from the state of Missouri? That would be the main reason I would expect a smaller number in the credit computation. (As you would actually end up paying Missouri the W-2 box 17 amounts minus the $97 refund in that case, so that would be the creditable amount…)

Assuming that’s what’s going on (and also to address your second question), you can definitely add your box 19 Super Bowl winning city’s earnings tax to that amount, as taxes paid to the state and all political subdivisions count for the credit. Based on your very organized description of things, I’m guessing you’re familiar with the “Tax Paid to Missouri” screen in the Kansas interface, where you can change the tentative amount to a “Correct Amount” in the right-hand column.

However, if something else is happening with the box 17 amounts (besides the refund being subtracted), then you’re still stuck there. In that case, @Canuck66, please re-post here, and hopefully I or someone else can help figure it out!

[Canuck66]

Thanks for help Ralph. Yes, getting a $97 credit from MO, so that answers that question. I was always wondering why Turbo Tax does not take into account the KC earnings tax as credit for KS state taxes, I will add this as you decribed in the “Tax Paid to Missouri” screen in the Kansas interface, where you can change the tentative amount to a “Correct Amount” in the right-hand column. So then I think back that I have never added the KC earnings tax to any of my previous returns, wondering if I should go back and do amended returns, and if so how far can you go back? I think you can only go back 2 years from what I read and wondering if more hassle than it is worth.

Yeah big Super Bowl parade today, actually decent weather for KC today, 20deg warmer than last parade. Again thanks for your help and advice.

[kstwins]

After adjusting your "taxes paid to Missouri" to account for the KCMO earnings tax, did you file your Kansas return electronically through TT? While Turbotax will automatically attach the Missouri tax return to the Kansas efile, it will not generate or attach a copy of Form RD-109 to the Kansas efile because Form RD-109 is not required if your employer withheld the earnings tax. Just curious if Kansas accepted your return as efiled or required you to provide a copy of the Form RD-109. I am trying to decide if I should paper-file the Kansas rerturn with Form RD-109 attached or just efile and see what KDR does.

[MarilynG1]

You could Efile your Kansas State return as is.  If you receive an Error, let us know and we'll try to help.

Here's more info on Form RD-109.

@kstwins