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February 7, 2020
Question

I made 36,706 in Missouri yet the state return calculates it to be 58,295? Why is this?

  • February 7, 2020
  • 1 reply
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I am a Kansas resident and worked in Missouri.  My W-2 shows 36,706.  The tax return prepared by turbo tax shows 58,295?

1 reply

February 7, 2020

I assume that your federal AGI is something like $58,295?

 

"If you were a Missouri part-year resident with Missouri source income and income from another state, you may use Form MO-NRI or Form MO-CR, whichever is to your benefit." See page 3 of the MO-NRI instructions.

 

So Missouri has two ways to deal with part year residents and nonresidents.

 

The first is that you can take a credit for the other state's taxes paid. See form MO-CR.

 

The second is that Missouri calculates the ration of Missouri source income to total federal income, and multiplies your federal income by this ratio. See MO-NRI. I assume this is what you are seeing.

 

You are allowed to choose either one, whichever is to your benefit. I imagine TurboTax will make the better choice for you.

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