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February 23, 2025
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Live in Missouri and worked in Illinois half the year

  • February 23, 2025
  • 1 reply
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Live in Missouri and worked in Illinois half the year and Missouri the other half of the year. Does Missouri tax me on my Missouri and Illinois income?

Best answer by SteamTrain

Yep...MO will still "calculate" a tax on all of it.

 

BUT, MO will you allow you a tax credit for the taxes you paid to IL  (at least up-to the tax MO would have charged if MO taxes it lower than IL)

 

BUT #2:   You need to:

   a)  fill in ALL your Federal income, deductions & credits first...every scrap. 

  b)  Then you must prepare the IL non-resident tax return second...so that the exact IL tax gets determined (any IL withholding done was only a required estimate...it may not be everything) ...but in the end IL can only tax the IL income.

   c)  Then at the very LAST, you prepare the MO resident tax return....somewhere in there the MO questions will ask about taking a credit for the taxes you paid to another state (IL).....

 

It has to be prepared in that order.

1 reply

February 23, 2025

It depends- Missouri allows Part Year residents to file as a Resident, in which case you would take a credit for taxes paid to your other Part Year resident state; or as a nonresident, in which case you would have to designate Missouri source income.  

 

gmserlr0Author
February 23, 2025

I resided in Missouri during all of 2024.  I worked the first half of year in Illinois and the second half in Missori.

SteamTrain
Employee
February 23, 2025

Yep...MO will still "calculate" a tax on all of it.

 

BUT, MO will you allow you a tax credit for the taxes you paid to IL  (at least up-to the tax MO would have charged if MO taxes it lower than IL)

 

BUT #2:   You need to:

   a)  fill in ALL your Federal income, deductions & credits first...every scrap. 

  b)  Then you must prepare the IL non-resident tax return second...so that the exact IL tax gets determined (any IL withholding done was only a required estimate...it may not be everything) ...but in the end IL can only tax the IL income.

   c)  Then at the very LAST, you prepare the MO resident tax return....somewhere in there the MO questions will ask about taking a credit for the taxes you paid to another state (IL).....

 

It has to be prepared in that order.

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