I'm working on my state taxes. I'm employed in MO but for most of 2020 I worked from home in KS due to COVID. Is this considered Remote Work?

Forum|Forum|5 years ago
January 30, 2021
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ToddL99

Yes, it would be considered "Remote Work". Technically, you would be responsible for KS income tax for the period of time you physically worked in KS.

Did your employer withhold MO or KS state tax from your paycheck? Before COVID, did you file a MO non-resident tax return, pay MO tax on your earnings there and then file a KS resident return claiming credit for the tax paid to MO?

Normally, this is what you would have done: You would file as non-resident for MO (for your MO source income only). You would also file a KS resident state tax return (for all income from all sources including MO). You would get a state tax credit in KS for the MO state taxes you paid on your nonresident MO state tax return.

The only difference with remote work, is that you would have less MO income to report (and pay MO tax on), Your remote income would be taxed only by KS.

sunprairie630

I'm in the same situation. I couldn't get the "help" to post my questions yesterday. See this resource- which seems to imply you potentially could go either way in 2020 in KS and MO but in 2021 must report remote income from the state your are telecommuting from:

https://www.hodgsonruss.com/assets/htmldocuments/Telecommuting_5.22.20.pdf

I am NOT a tax pro. The guidance on this is poor- probably because 50 states all have their own approaches (or non-approaches). When I apportioned my time by work location I got a penalty from KS for underpayment. So much for the statement about waiving penalties in the KS guidance!! Unless the software isn't up-to-date for this? Messy!!

If a tax expert sees this- in my case MO employer chose to continue to take out MO tax for entire year- citing the MO guidance.

TomD8

Employee

Missouri does not tax non-resident remote workers who work from outside the state.

Missouri Statute Section 143.181 (2)(2) states that the Missouri-source income of a non-resident is income from "a business, trade, profession, or occupation carried on in this state."

https://law.justia.com/codes/missouri/2011/titlex/chapter143/section143181/

Therefore the income of a KS resident working remotely in KS for a MO employer is not taxable by MO. Conversely, the income earned by a MO non-resident from work actually performed in MO is entirely taxable by MO.

A MO non-resident who works both within and without MO during the tax year would apportion his income accordingly.

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

Buschog

Does it matter that even though my physical body is in Kansas, I remote into a physical computer in Missouri to do 100% of my work?

TomD8

Employee

@Buschog --

If you're a resident of KS and you never physically work in MO, then your income from that work is not subject to MO income tax. It is taxable only by your home state of KS.

If MO taxes were mistakenly withheld from your pay, follow @MayaD 's instructions above in order to obtain a refund.

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

viking10

I am a remote employee that lived in MO for the first six weeks of 2023. I moved to TN and continued my remote work for the same employer based in MO for the remainder of 2023. My employer continued to withhold MO taxes until May of 2023 when they switched to TN (no state taxes).

Can I claim nonresident for MO and get a refund on the MO taxes paid from February - May?