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January 19, 2024
Question

Remote work - Taxed in Missouri, Remote worked in KS

  • January 19, 2024
  • 1 reply
  • 0 views

Hey Folks!

Question - I worked 100% Remote in Kansas for a Missouri employer. My W2 reflects that my income was taxed by Missouri, and not Kansas. 

When filling out a MO-NRI, I entered 0 so that I would receive a full refund of the amount of taxes paid to Missouri, since its not taxable.

However, when filling out the KS return, it asks about taxes paid to other states. Would I enter the amount taxed by Missouri here? I would receive a credit for the amount paid, but it almost seems like i'd be double dipping.

1. Receive refund of taxes paid to MO
2. Kansas provides credit to taxes paid for MO, and i have to pay any difference, should there be any.

I believe the correct way to report this would be to report NO taxes paid to missouri, and then just give Kansas the refunded amount + any difference, correct?

1 reply

SharonD007
January 21, 2024

No, you wouldn't enter the Missouri (MO) taxes paid in the Kansas (KS) tax return because that information should have been entered in the MO tax return first which would have generated a MO tax refund.  You are correct, if you enter it there, you would also get a credit for paying taxes in MO which would be double-dipping.  Review your entries because it appears that you may not have entered the correct information in your MO tax return.

 

The correct way to report your taxes paid to Missouri is to enter exactly what’s on your W-2 in TurboTax. Don't make any modifications, TurboTax will perform the calculations for you. Also, you should prepare the non-resident tax return for the state that you work in (Missouri) first and then the return for the state you live in (Kanas). You may have to delete both states and start over to ensure that you are preparing correct state returns.

 

Instructions to delete state tax returns in TurboTax Online

  1. Login to TurboTax
  2. Select State Taxes, then Review/Edit
  3. Select the trash can next to the state that you want to delete, then Delete
  4. You can add the states back on the next screen

 

Review the TurboTax Help article How do I delete my state return in TurboTax Online? for more information.

 

Prepare you non-resident and resident tax returns

  1. Start your MO tax return first
  2. Answer the questions as you scroll through the screens. When you get to the Remote Work screen, you will enter the amount from box 16 (state wages) of your W-2. (The portion of your income earned working outside of MO is not taxable to MO, so TurboTax will subtract it from your MO income, and you will get a refund from MO.) Check the refund status for MO at the top of your screen. See screen shots below:
  3. A screenshot of a computer

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  4. The next screen will allow you to enter your income from Missouri Sources which will be the same amount:
  5. A screenshot of a website

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  6. Continue through TurboTax and you will get to a screen that will show your MO Source Income, your MO Income Tax, which should be zero since you will get a refund.
  7. When you prepare your Kansa state return, you will have a balance due for the income that you made in MO.

 

Review the TurboTax article Multiple States - Figuring What's Owed When You Live and Work in More Than One State for additional information.

 

Edited 1/21/24|12:05 PM

 

@Legion_s550 

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