Credit for Taxes Paid in Other State

Forum|Forum|6 years ago
October 10, 2019
1 reply
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I live in Kansas but work in Missouri. I have Missouri and Kansas taxes withheld from my paycheck. In calculating the amount of my refund from Kansas, Turbo Tax isn't giving me credit for the taxes paid to Missouri. I've double checked W-2 entry in Turbo Tax and that appears to be entered correctly.

SteamTrain

Employee

Hard to know why not...but:

1) Make sure you full finish the MO non-resident tax return first...completely thru it and error checked before going into the KS tax return. The KS tax return can't get the proper value until the MO non-resident tax return is fully filled in.

2) the MO withholding isn't always the credit. IF you are getting a full withholding refund from MO, then no credit is allowed since you are getting it all back. The Credit is only for what MO keeps. Even then the credit could be somewhat lower if the KS tax rate for your income level is lower than what MO charges....KS only allows a credit for up-to what KS would-have charged for the same income.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*