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Husband's employer in MO won't withhold taxes for KS; how best to handle?

Forum|Forum|4 years ago
February 2, 2022
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My husband and I live in KS. I work remotely in KS, while he commutes to work in MO in person. When he started with this employer in 2020, they said they didn't have a KS tax id, and wouldn't be withholding for that. We married in 2021, so this is our first year filing jointly (and my first year really dealing with this). Does the normal reciprocity apply? Pay whatever is owed in MO, then report that to KS to reduce what we owe there? If it matters, while we still need to receive and process a few documents, they're unlikely to change us owing both states (more in KS than MO).

Best answer by AmyC

Please carefully follow these directions to prepare the states in a special order. You may need to delete both states and begin again.

First, prepare your non-resident MO return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
Then prepare your resident state KS return and it will generate a credit for your income already being taxed in the non-resident state.
The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state, if they have a higher tax rate.

It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.

Congratulations on the wedding!

AmyCAnswer

Employee

Please carefully follow these directions to prepare the states in a special order. You may need to delete both states and begin again.

First, prepare your non-resident MO return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
Then prepare your resident state KS return and it will generate a credit for your income already being taxed in the non-resident state.
The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state, if they have a higher tax rate.

It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.

Congratulations on the wedding!

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