Question

Non-Resident Missouri Tax Question on Interest Income

Forum|Forum|5 years ago
June 24, 2020
1 reply
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I live in Illinois and work in Missouri. Turbo Tax State for Missouri keeps trying to tax me on dividend income that was not earned in Missouri. I get a message under Interest Adjustment Allocation that says "We have allocated your interest income adjustment on interest earned from states other that Missouri. If you wish to change the allocation amounts, you must go back to the federal return and make the appropriate changes." I don't live in Missouri so they should not be taxing my interest income from investments. It doesn't appear to let me change the amount anywhere or change it in the actual form. Does anyone have a suggestion?

CatinaT1

As a nonresident of Missouri with Missouri source income, all of your income (as reported on your Federal 1040) is included on your MO-1040. However, you will also have Form MO-NRI that calculates your Missouri income percentage. This percentage is transferred to your MO-1040 and used to calculate your Missouri tax liability. As a result, you are taxed on your Missouri source income only.

It can be misleading when you see that income reported on your Missouri return, but you are only being taxed on the percentage of income you actually earned in Missouri.

https://dor.mo.gov/faq/personal/nonresident.php

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