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posted Jun 4, 2019 11:09:30 PM

Am I required to pay Missouri income tax if I am self employed and live in Kansas. 40% of my work is completed in Missouri and 60% is completed in Kansas.

I am self employed and living in Kansas City KS.  I have a license to preform work in Kansas and Missouri.  I am contracted on a 1099 by a company in St. Louis MO and have been paying all income tax to the state of Kansas and nothing to Missouri, on the recommendation by my tax preparer (HR Block).  I only receive a 1099 issued by the state of Kansas.  Recently I received a letter from the Missouri Department of Revenue demanding payment of wages earned.  Do I also need to file in Missouri as a non-resident state?  If so, I have already paid all taxes earned on wages to Kansas, do I receive a credit?  

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1 Best answer
Level 15
Jun 4, 2019 11:09:31 PM

Your resident state of Kansas can tax you on ALL your income, regardless of where earned.  But any income you have from physically working in Missouri is also taxable by Missouri.  Therefore, if you have such MO-source income, you must file a non-resident Missouri tax return in addition to your home state Kansas return.  You'll be able to take a credit on your Kansas tax return for the taxes you pay to Missouri, so you won't be double-taxed.

In TurboTax, you should complete your returns in this order:

1.  Federal

2.  Non-resident State

3.  Resident State

2 Replies
Level 15
Jun 4, 2019 11:09:31 PM

Your resident state of Kansas can tax you on ALL your income, regardless of where earned.  But any income you have from physically working in Missouri is also taxable by Missouri.  Therefore, if you have such MO-source income, you must file a non-resident Missouri tax return in addition to your home state Kansas return.  You'll be able to take a credit on your Kansas tax return for the taxes you pay to Missouri, so you won't be double-taxed.

In TurboTax, you should complete your returns in this order:

1.  Federal

2.  Non-resident State

3.  Resident State

Level 15
Jun 4, 2019 11:09:33 PM

Go back to Block and have them amend your returns, as they gave you the wrong advice.
 <a rel="nofollow" target="_blank" href="http://dor.mo.gov/personal/nonresident/">http://dor.mo.gov/personal/nonresident/</a>