We moved from Tennessee to Missouri in March of last year.
My employer is still in Tennessee and work for the same employer, 2 weeks remotely and 2 weeks in Tennessee . I don't have any income from a Missouri source.
As I am doing the taxes, turbotax generated a big bill for Missouri Tax all my income from Tennessee. Is this correct?
You'll need to sign in or create an account to connect with an expert.
Once you moved to, and became a resident of MO, ALL your income from that point on becomes MO-Taxable income. Even the TN income (after you moved)...both in TN and remotely.
Now
MO uses special procedures for part-year MO residents. You can file either:
1) As a full-year resident, taxing everything for the year, but taking a credit for the taxes you had to pay to the former state (TN).....
or
2) Filing as a MO Non-resident for the entire year, but then carefully allocating all income you received after moving to MO as being MO-taxable income.
______________
Since TN has no income tax, Method #1 would be the worst way to go unless you moved the first few days or week of Jan 2022. IF TN had an income tax, MO would have allowed you to take a credit for the income taxes you paid to TN for working there on-site...but that's a zero for TN.
___________
SO you need to make sure you use the full year non-resident procedure for your 2022 taxes...and allocate to MO, any and all income you received after moving to MO. Your Federal taxes need to be fully filled in first...every scrap....before working thru the MO non-resident tax return Q&A and $$income allocations.
____________
Spend the entire month of Feb getting it right....but If it gets too messy, then perhaps this is the year to see a local tax professional.
___________
......for 2023 MO taxes you file in early 2024...you will be a full year MO resident and all your income is MO-taxable income, even the TN remote and on-site work. (well, unless you move to your home to another state again...but that would be causing tax chaos)
You must pay Missouri state income tax on all the income you earned while a Missouri resident. Normally you would pay state tax in the state where you worked as a nonresident and get a credit for the taxes paid, but since Tennessee does not have income tax, you would not get a credit.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
mace2lives
Returning Member
vincetucker1969
New Member
liz-r-tenny
New Member
ColeR
New Member
gatrellc
New Member