Missouri State Form MO NRI

[aemc19791]

Hello,

I'm a resident of California but work remote for a company in Missouri. 

As I'm trying to complete the MO-NRI Form, it notes "remote income should not be greater than the total Missouri wages on federal return."

I entered only the income I made from the company in Missouri.

From the message on Turbo Tax, I should not have to pay taxes to Missouri because I have only worked remote though it seems to be including all of my wages from other states as well so I now owe quite a bit to Missouri.

Can you provide any assistance on completing this form? Thank you.

[MonikaK1]

Once you've determined that you need to file a nonresident state return, the first thing you want to do is make sure you've filled out the Personal Info section correctly on your Federal return:

1. With your return open, select My Info in the menu.
2. On the Personal info summary screen, scroll down to Other State Income, and select Edit.
3. At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
4. Select Continue to return to your Personal info summary.

After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.

Tip: To ensure accurate calculations, always complete the nonresident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.

Go through the TurboTax interviews in the correct order and answer all of the questions. Each state's return is set up differently; some start the return with the Federal adjusted gross income and then tax you on a percentage of your income based on how much was in that state. The end result should be that you are only taxed by one state.

See this help article for more information.

If you are required to file a federal return, you may not have to file a Missouri return if:

• you are a resident and have less than $1,200 of Missouri adjusted gross income;
• you are a nonresident with less than $600 of Missouri income; or
• your Missouri adjusted gross income is less than the amount of your standard deduction plus your personal exemption.

Note: If you are not required to file a Missouri return, but you received a W-2 form indicating you had Missouri tax withheld, you must file a Missouri return to get a refund of your Missouri withholding. If you are not required to file a Missouri return and you do not anticipate an increase in income, you may consider changing your W-4 form to "exempt" so your employer will not withhold Missouri tax.

The filing status used on your Missouri return must match the filing status used on your federal return.

See this Missouri Department of Revenue webpage for more information.

[aemc19791]

Thank you for this information. I did confirm my personal information.

There is this help message I noticed while filling out my tax information on Turbo Tax:

If you performed remote work for a Missouri employer outside of Missouri during 2023, the portion of income earned while working outside Missouri is not taxable to Missouri. Amounts entered as remote work income will be subtracted from Missouri sourced wages transferred from your federal return.

So if I have two jobs: one in my resident state and a remote job with company based in Missouri, it seems like I would not be responsible for any tax to Missouri. However, Turbo Tax seems to be factoring in all my wages and so I am owing tax to Missouri. This seems to be an incorrect calculation. 

What can I do about this? Thank you.

[DMarkM1]

If the remote work for MO company was the only MO income then you do not have a filing requirement in MO as shown by @MonikaK1.  However, if the MO company withheld MO taxes, then you may want to file in MO to get those refunded as also shown in @MonikaK1 .  

If there is no filing requirement in MO, then in the "MY Info" section using the "Other State Income" topic you should answer "No" you did not earn income in another state.

If you are filing to obtain a refund of taxes withheld for MO, then you would answer "Yes" you earned income in another state and select MO from the dropdown.

After entering all your income items in the federal "Wages & Income"  section you can then complete the non-resident MO return. 

In the "Income" section of the MO return you will arrive at page asking about "Remote Work" wages.  You need to enter all the wages that were earned working outside of MO.  Next you need to allocate "Zero" income to MO for the other categories of income from your federal entries.  You need to enter "0" and not leave the boxes blank.

This will result in zero taxable MO income and all withheld taxes being refunded.