I received income from the sale of grain in 2017 from a farm in IL I sold in 2017. Do I declare the income in MO my state of residence? I lived all of 2017 in Missouri.

[DianeW · Accepted solution]

Yes, with explanations.  See the information below about resident and nonresident state tax returns, and how to report income derived from a nonresident state.  Prepare the nonresident state first, then your resident state return last.

Resident State:  All income worldwide is required to be reported on your resident state return.  Any money that is also taxed in a nonresident state is eligible for the "credit for taxes paid to another state" when you complete your resident state return.  Your resident state does not want you to pay tax twice on the same income.

Nonresident State: Any money earned in a nonresident state is required to be reported on that state tax return (with the exception of reciprocal agreements which does not apply in this case).  The nonresident state will tax any income earned while you were in that state.  

[DianeW]

@user12374551 Please add a comment if you have more questions.  I will respond.