Missouri issuing refund for tax year 2018-2021 if no filling requirement in 2022 do to head of household credit. Should that reduce tax liability in resident state?

[RoshountaJones]

Tax cuts and job act reduced tax liability for past tax year in employment state MO. No filing requirements in Missouri starting 2022 so issued refund for credit. Should tax liability be adjusted in residence state of Illinois??

[DavidD66]

Can you clarify your question?  It sounds like you live in Illinois, but worked in Missouri.  Even though you didn't file a tax return in Missouri for 2022, you received a refund for prior years.  Are you asking if that will reduce your tax liability in your state of residence - Illinois?  If that is your question, then I wold say no.  Receiving a Missouri refund will not result in receiving a reduction in your tax liability in Illinois.  If that is not what you were asking, please clarify.

[RoshountaJones]

You understood correctly. I was wondering if when I originally filed those years Missouri would have applied my deduction amounts correctly which at that time would have reduced my tax liability to them could that have resulted in me having a lower tax liability to my home state Illinois. As mentioned I believe you understood perfectly so thank you so much for helping. If you have additional info to share after my clarification please do advise. Illinois is tearing my pockets up!

[RoshountaJones]

Reduction in tax liability for prior years not the current. 

[MarilynG1]

Reducing your tax liability in Missouri would not change your Federal taxable income (which is where Illinois starts their calculations) so I don't believe that would help with your IL taxes.

You could go back into your prior year returns (like your going to 'Amend') and see if it changes your IL taxes. 

[RoshountaJones]

Thank you! I see now. I just can’t understand why I keep owing Illinois so much every year.