Question

Missouri source income and capital gains- 2 questions

Forum|Forum|3 years ago
March 30, 2023
1 reply
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1. Husband moved with job 12/31/21 to Florida (previously resided in Missouri) Job is with MO employer and he works remote from Florida. Is his income from a Missouri source? I thought remote workers were not taxed in Missouri... TT is taxing him.

I worked and lived in Missouri in January, 2022 only and then moved to Florida. I claimed both of us as nonresidents of MO. Do I need to claim half his income as we are married filing jointly?

2. In April, 2022 we sold a Missouri condo (rental/business investment). Since we were not residents of MO at that time, do we owe capital gains tax to MO? Florida does not have State Tax. TT asks how much of the capital gains is from a Missouri Source. Would the total gain be from a Missouri source since it was real estate in Missouri? (even though we are non-residents?) We are already paying a hefty capital gains tax for Federal so any reduction for MO is appreciated.

E

ErnieS0

Your husband’s income is not taxable to Missouri because he is not working in the state.

Missouri says:

I am a Missouri Employer but I have nonresident employees who work in a state other than Missouri. Am I obligated to withhold Missouri tax from these employee’s wages?
No. If a non-resident employee performs all of their services outside of Missouri, the wages paid to that employee are not subject to Missouri withholding.
For additional information, refer to the withholding tax frequently asked questions web page.

You can file a non-resident MO return to get back the tax withheld.

Go to screen “Remote Work” in the Missouri section
Enter all of your spouse’s income in the box Remote Work Income

See: Alternative Work Location Resources.

I do not understand your second question. If you are filing jointly, all your income will be reported on your Missouri return and all your non-Missouri income will be subtracted.

You can file as a non-resident.

All the capital gains from the sale of the condo are Missouri income, even if you were both nonresidents at the time of sale since the property is located in Missouri.

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