I think that my W-2 is wrong, there are two states with the same income listed in boxes 15,16&17, and I think that taxes should have been withheld for federal and MO. Can an expert out there verify this for me?

[tbduvall]

Box 1     1408.80

Box 2      Blank, but I claimed no allowances so I think there should have been some withheld

Box C     Homesteader Café in Missouri

Box 15         Box 16           Box 17

KS                1408.80          Blank

MO              1408.80          Blank

Same income listed for both states when I only worked in MO.  Won't this cause double-taxation?  And again, I claimed no allowances so I think there should have been some witheld

Box 18       Box 19             Box 20

1408.80     14.09               KC

This appears to be correct.

I believe that this needs to be corrected, but if an expert could verify which parts should be corrected, I would appreciate it.

[ErnieS0]

In answering your question, I assume you are a resident of Kansas who worked in Missouri. In that case you are taxed by both states because you worked in MO but lived in KS but will get credit on your Kansas return for tax paid to MO and to Kansas City, MO.

Missouri taxes anyone who earns money in the Show-Me state. Kansas City taxes anyone who works inside city limits.

Kansas residents are taxed on worldwide income but will give you a credit for tax paid to KS and KCMO.

1. Go to the screen “Take a look at Kansas credits and taxes” and select “Credit for Taxes Paid to Other States”
2. On “Taxes Paid to Other States,” tap YES
3. On "Other State Information," choose Missouri, then Continue
4. If you prepared your Missouri first, TurboTax will populate your Double-Taxed Income and Tax Paid to Your State.
5. In the box Tax Paid to Missouri add your 1% KMCO earnings tax to the Missouri Return Amount. If TurboTax did not populate an amount enter the correct amounts from your MO return + your KCMO tax.
6. On “Missouri Included in Kansas AGI” enter the Total Income From Missouri included in your Kansas adjusted gross income. This will likely be the same as Missouri income on the other screen
7. On “Out of State Tax Credit Amount,” you will see your credit for Missouri tax.

[tbduvall]

Noted, but not what I was really trying to get at.  

1st Concern:

I am concerned about how the W-2 itself, which I think is wrong, affects my taxes when it is imported in.  My other job, while working in MO and living in KS only has one line for boxes 15, 16 & 17 -

Box 15         Box 16           Box 17

MO              596.46            Blank

It doesn't list Kansas at all, and I don't think the Homesteader one should either.  MO business, I worked in MO, so boxes 15,16 & 17 should be just MO information . . . correct?

2nd Concern:

I claimed no allowances so I believe there should have been some withholding listed on the W-2, correct?

[ErnieS0 · Accepted solution]

Yes, there is usually only one state listed on a W-2 if you live in one state (Kansas) and work in another (Missouri). That’s because your home state will give you a credit for any tax paid to your work state, so there’s no need to list double income and double withholding.

In your case, having KS and MO on your Homesteader W-2 will not impact your return because (1) the Box 16 amounts are the same, and (2) you have no withholding. For Kansas residents, TurboTax will use Box 1 income because the K-40 starts off with federal adjusted gross income.

If you are concerned, you can remove the KS line from your W-2. Removing it will not impact any of your returns or e-filing or get you audited.

Depending on your work hours and income, it’s possible to have no tax withheld even if you claim no allowances. That’s because you would owe no tax in either KS or MO on just your Homesteader income so no tax was withheld.

[tbduvall]

ErnieS0

Thank you so much for this . . . it is very helpful. I haven't done both states in ages and I would have forgotten the local tax.

I'd like to ask about #5 "In the box Tax Paid to Missouri add your 1% KMCO earnings tax to the Missouri Return Amount. If TurboTax did not populate an amount enter the correct amounts from your MO return + your KCMO tax." TurboTax did not calculate a MO Return Amount for Double-Taxed Income or Tax Paid to MO (including . . . KCMO) on Double-Taxed Income. What/where do I pull these amounts from on my MO return for these boxes?

[ErnieS0]

Your Missouri income is line 6 of Form MO-1040 (Missouri adjusted gross income). The tax is line 30.

If you are using TurboTax online, you can use Tax Summary.
 

1. Tap Tax Tools in the left column
2. Then Tools
3. In Tools Center, choose View Tax Summary
4. Select MO Tax Summary and use Missouri adjusted gross income and Total Tax
5. Select Back in the left column to return