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nrcma
New Member

Non-resident Kansas

I live in Iowa.  I teach 100% remotely for PSU in Kansas.  I am finding conflicting information regarding remote workers.  I have been subject to KS withholding since I started teaching in 2019.  I have filed a Kansas return every year.  As of the onset of the fall semester, my employer stopped taking KS withholding and started taking Iowa withholding.  I have not received a full refund of withholding taxes from Kansas.

 

Should I not have been subject to Kansas withholding and entitled to the full refund all this time?  If so, what did I need to select in the software to catch this so it does not happen moving forward?

2 Replies
tagteam
Level 15

Non-resident Kansas

Contact Support for the appropriate data entry.

 

What is the TurboTax phone number? (intuit.com)

Opus 17
Level 15

Non-resident Kansas

Generally you owe state income taxes on all your world-wide income to the state where your permanent residence is located.  You also owe state income tax to a second state if you physically live or work temporarily in that second state.  Kansas does not charge you state income tax if you live in Iowa, even if you work for a Kansas-based employer.  However, if you briefly work in Kansas, that will generate Kansas income.  For example, if you are in Kansas one week a year for training, then roughly 1/52th of your income will be considered Kansas-source and subject to Kansas income tax. 

 

You should be filing an Iowa resident income tax return.  If you had Kansas withholding, you needed to file a Kansas non-resident return to declare zero Kansas wages, zero Kansas tax owed, and receive a full refund of the withholding.  This is what you will do for 2022.  (When you prepare a non-resident return, Turbotax will ask you to allocate your income between the states.  Since you have no Kansas income, you will allocate zero to Kansas, and this will result in a full refund of Kansas withholding.)

 

For 2019, 2020 and 2021, you need to file Iowa returns and pay Iowa tax (if you did not) and you need to file Kansas returns to claim a full refund of any Kansas tax you paid.  You may want professional assistance at this point.  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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